- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Posted June 23, 2026 at 9:30 am
Emerging market (EM) companies beat profit estimates for the first time since 2022: just the validation that this year’s 30% rally needed.
Finally, firms in MSCI’s EM index reported average earnings that were above analyst forecasts made the year prior. It’s a big shift for a market that’s spent four years on the wrong side of expectations.
🔺 Unsurprisingly, a chunk of that boost was thanks to the AI boom. Astronomical spending on data centers pushed up profit for chip companies, with South Korea’s SK Hynix and Samsung Electronics beating estimates by 43% and 16%, respectively, and Taiwan’s TSMC coming in 5.7% ahead.
🔺 Here’s what’s really got investors optimistic: it wasn’t just AI. Indian Oil beat expectations by 33%, and Brazilian electricity producer Eneva posted a 44% win. That broader earnings growth makes the EM rally look much more solid, sitting on numbers rather than just hype.
For markets: EM-powerment.
There’s another factor that contributed to the rally: EM economies are simply in better shape than they used to be. Many regions now have more cash set aside and can depend less on foreign borrowing. Plus, their central banks have built trust with investors by tackling inflation earlier.
▶ That’s helped EMs cope with higher oil prices and swings in the US dollar without knocking the rally.
The bigger picture: Room to run?
This news, of course, makes EM stocks look even more attractive – and they’re relatively cheap compared to US ones. So asset managers could be tempted to push even more cash in that direction, fueling the rally further. In fact, because of the size difference between the EM market and the US one, even a 5% trim to American portfolio weightings would mean roughly 30% more money in emerging markets. That could add up fast.
—
Originally Posted on June 22, 2026 – Emerging Market Companies Are Bringing Receipts To The Rally
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Finimize and is being posted with its permission. The views expressed in this material are solely those of the author and/or Finimize and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.
Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.
Spot currencies are not available at IBKR Singapore.
Related Articles
Join The Conversation
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!