Emerging-market profits beat estimates for first time since 2022
Why it matters: Stronger earnings across Asian tech, Indian energy and Brazilian utilities bolster the case that this year’s nearly 30% rally has firmer footing.
Companies in the MSCI Emerging Markets Index are beating profit estimates for the first time in four years, giving investors new evidence that the recent rally in developing-world stocks is supported by earnings growth. Data compiled by Bloomberg showed the index’s weighted average earnings per share for the 12 months through May reached 95.1 points, above the 94.6 in blended forward estimates made a year earlier. The gains were led by Asian technology groups including SK Hynix, Samsung Electronics and Taiwan Semiconductor Manufacturing Co, but extended to Indian Oil Corp and Brazilian power producer Eneva. Emerging-market stocks have risen nearly 30% this year, and investors at Morgan Stanley and JPMorgan Chase expect gains to widen beyond AI-linked shares.