EM Resilience Defies Gravity: How Developing Markets Are Outperforming in the Storm

While developed markets reel, emerging economies are displaying surprising strength, challenging conventional wisdom about risk-off environments.

Outperformance Drivers:

• India: Sensex +0.7% on domestic demand strength
• Mexico: IPC +2.1% on nearshoring flows
• Saudi Arabia: Tadawul +1.2% despite oil volatility

Structural Advantages:

1. Lower Duration Risk: Shorter-dated debt profiles
2. Demographic Dividends: Younger populations support growth
3. Commodity Buffers: Net exporters benefit from price swings