Lundy Intelligence · Emerging markets

Brazil fell 18% in election week, and Korea rose 3%.

Emerging markets lost 8.6% in October and now trade at about 8.9 times forward earnings.

Edition 3EM Week Ahead
2 Nov 2026Published
18 pagesFull report
30 Oct closePrices as at
The summary

EM Week Ahead · Edition 3: Brazil fell 18% in election week, and Korea rose 3%

4x8x12x16x20xMSCI World 17.9xIndia19.0xTaiwan16.7xMexico12.4xSaudi Arabia12.2xPoland11.1xChina9.5xMSCI EM8.9xBrazil7.5xIndonesia7.3xTurkey5.8xSouth Korea4.1x30 September30 October
4x8x12x16x20xMSCI World 17.9xIndia19.0xTaiwan16.7xMexico12.4xSaudi Arabia12.2xPoland11.1xChina9.5xMSCI EM8.9xBrazil7.5xIndonesia7.3xTurkey5.8xSouth Korea4.1x30 September30 October

Fig. — Forward P/E: MSCI at 30 September, and the same earnings at 30 October prices (Lundy estimate); dashed line: MSCI World at 17.9x · Source: MSCI, Barchart; Lundy Intelligence

Lula won Brazil’s runoff with 51.8 percent against a market positioned for the other side. The Ibovespa fell 13.9 percent on Monday, triggering the first circuit breaker in six years, and ended the week down 18.1 percent; the real had its worst week since 2008. Korea went the other way: SK hynix beat forecasts by about 10 percent and set out around KRW 100 trillion of shareholder returns for 2026, before Friday’s AI-spending scare took back some of the gain. The KOSPI rose 3.2 percent on the week.

Over October, MSCI EM (EEM) fell 8.6 percent in US dollars and closed below its 200-day average. Korea fell 16 percent and Taiwan 10 percent over the month in dollars. EM now trades at about 8.9 times forward earnings, against 17.9 times for MSCI World at the end of September. The full edition covers 28 markets, the scoring of last week’s calls and the week ahead, including Brazil’s central bank on Wednesday.

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Practitioner-led market commentary for information only. Not investment advice, issuer-sponsored research or a personal recommendation. Prices are closes on Friday 30 October 2026 from Barchart and the public sources named in the report. Views may change without notice. Lundy may hold interests in subjects covered.