The rise of Taiwan and India is allowing investors to better diversify by betting on artificial intelligence chipmakers and the infrastructure boom coming from Modi’s programs to modernise the country. As the US rate cycle peaks out, having attractive options in emerging markets is fundamental to any pivoting of capital flows.
The race to replace China’s top spot in emerging market equity portfolios is heating up, with Taiwan and India running neck to neck as formidable rivals.
Thanks to record stock rallies, Taiwan and India now command more than 19% weightings each in the MSCI EM Index. That compares to China’s 22.8%, whose standing has steadily shrunk over the past few years, Bloomberg-compiled data show.
