Emerging Stocks on Longest Winning Streak in 21 Years

​A Rally for the Record Books
Emerging-market stocks are on fire, logging their ninth straight month of gains — the longest winning streak since 2004. The MSCI benchmark for developing economies climbed another 0.4% in September, pushing its monthly rise to nearly 7%.

Asia Tech Leads the Charge
The surge is being fueled by Asian tech giants. Alibaba, Tencent, and Taiwan Semiconductor are powering the rally as investors pile into companies tied to artificial intelligence and digital growth.

Global Investors Still Catching Up
Analysts say global investors remain underweight on Chinese equities, meaning there’s still room for the rally to stretch. Despite their big run this year, Chinese tech stocks are still trading at lower valuations than their U.S. counterparts, where multiples are looking increasingly stretched.

Currency Moves Limited
Emerging-market currencies were relatively calm, with the Hungarian forint leading gains against the dollar. Traders are keeping an eye on the looming U.S. government shutdown, though so far the risk hasn’t shaken markets in a meaningful way.

Beyond Asia: Regional Highlights
- Israel’s TA-35 index hit a record after Trump and Netanyahu announced a 20-point plan to end the Gaza war, though the shekel pared earlier gains.
- Philippine stocks slid as corruption allegations rattled confidence, triggering foreign investor outflows.
- In credit markets, Kuwait returned to global bond markets for the first time in eight years, while Egypt launched a sukuk transaction.

The Bottom Line
​From tech-fueled optimism in Asia to shifting political tides in the Middle East, emerging markets are riding momentum not seen in over two decades. For investors, the streak highlights both the opportunities — and the volatility — that define developing economies.