Emerging Markets Equities

NVIDIA reported Q2 FY2027 revenue of $96.2 billion, up 106% year over year, with data-center revenue of $89.0 billion, up 117%, confirming strong global AI infrastructure spending.

Why it matters here: Exceptional AI compute demand supports Taiwan and South Korea semiconductor supply-chain exposure.

Counterpoint: The benefit is concentrated in technology-heavy country exposures.

South Korea's August exports rose 68.7% year over year to $98.3 billion, while semiconductor exports rose 209% to $46.65 billion and the trade surplus reached $34.75 billion.

Why it matters here: Record semiconductor exports directly strengthen South Korea's external and technology earnings backdrop.

Counterpoint: Automobile exports weakened and the growth rate partly reflects an unusually strong base.

China's official manufacturing PMI rose to 49.8 from 49.2, with production at 50.4 and new orders at 50.6. Non-manufacturing activity remained at 49.0 and its new-orders index fell to 44.1.

Why it matters here: Improving Chinese production and new orders support trade- and demand-sensitive exposures.

Counterpoint: The headline PMI remains below 50 and services are still contracting.

Brazilian GDP grew 0.5% quarter over quarter and 2.0% year over year in Q2, above Reuters-poll expectations of 0.4% and 1.8%, but household consumption fell 0.4% and policy rates remained restrictive.

Why it matters here: Brazil's Q2 growth exceeded consensus, supporting the country's earnings and activity backdrop.

Counterpoint: Growth slowed from Q1, consumption contracted and monetary policy remains restrictive.

India's current-account deficit widened to $4.2 billion, or 0.5% of GDP, in Q1 FY27 from $3.4 billion a year earlier as the merchandise trade deficit rose to $86.1 billion; stronger services receipts and remittances partly offset the gap.

Why it matters here: A wider merchandise deficit and current-account deficit add modest currency and external-balance pressure to India exposure.

Counterpoint: Services receipts, remittances and FDI remain meaningful offsets.

China's official preliminary accounts showed Q2 GDP growth of 4.3% year over year and first-half growth of 4.7%; construction contracted 4.1% year over year and real-estate output fell 0.2%.

Why it matters here: Slower Chinese growth and property-sector weakness weigh on demand-sensitive exposures.

Counterpoint: The latest manufacturing PMI shows some stabilization.

South Africa's Absa manufacturing PMI fell to 45.8 in August from 46.8 in July, its fourth monthly decline; business activity fell to 40.2 and new orders to 40.3.

Why it matters here: A fourth consecutive PMI decline and sharp weakness in activity and orders point to near-term manufacturing pressure.

Counterpoint: Six-month business expectations improved above 50.

Renewed fighting between the United States and Iran revived concerns over Middle East oil-supply disruptions and shipping risk, reinforcing an already tight 2026 energy backdrop.

Why it matters here: Renewed Middle East conflict raises energy-cost, inflation and risk-premium pressure for the affected exposures.

Counterpoint: Some defensive assets or commodity producers can benefit from the same shock.

Treasury estimated $739 billion of privately held net marketable borrowing in Q3 and $628 billion in Q4. Its August refunding offered $125 billion of notes and bonds and raised about $28.7 billion of new cash.

Why it matters here: Large U.S. financing requirements can absorb liquidity and keep term-premium pressure elevated.

Counterpoint: Treasury buyback and debt-management operations can mitigate market-functioning stress.

Governor Michael Barr said the labor market is stable and the economy is growing solidly, but inflation remains too high; he said he would favor decisive rate increases if inflation is not moderating sufficiently by the September FOMC meeting.

Why it matters here: A more hawkish U.S. rate path raises discount-rate and liquidity pressure for the affected exposures.

Counterpoint: Solid growth and stable employment could cushion cash flows even if policy stays restrictive.