Emerging Markets: EM stocks at record high powered by AI gains; Colombian election results in focus

SK Hynix

22/06/2026 11:02

Taiwanese stocks at record high 
China left benchmark lending rates unchanged in June
Colombian assets seen extending gains after De La Espriella's victory
By Avinash  P and Ragini Mathur

    June 22 (Reuters) - Emerging market stocks climbed to a record high on Monday, driven by AI-led gains in East Asian tech and progress in Middle East peace talks, while Colombian assets prepared to jump following a narrow presidential election victory for right-wing candidate Abelardo De La Espriella.
MSCI's index of EM equities .MSCIEF rose 0.9% to trade at record high levels, led by Taiwan's benchmark .TWII surging 2.8% to a fresh peak, while South Korea's KOSPI .KS11 climbed 0.7% to hover near Friday's all-time high. 
The two tech-heavy markets, the largest components in the MSCI gauge, have surged more than 110% and 60% respectively this year, fuelled by stellar global demand for artificial intelligence.
In Latin America, Colombian right-wing candidate Abelardo De La Espriella clinched a narrow victory in Sunday's presidential election, according to an initial ballot count.
U.S.-listed shares of Colombian companies gained in premarket trading, with the Global X MSCI Colombia ETF COLO.K jumping 4.4%.
"The victory for right-wing Abelardo de la Espriella in Colombia's presidential election should pave the way for more pro-business policymaking, tighter fiscal policy and improved relations with the U.S., which should support Colombian assets," said Kimberley Sperrfechter, senior emerging markets economist at Capital Economics.
Broader global sentiment was also supported by diplomatic progress in the Middle East, which helped oil prices to ease by 1.7%. A joint statement from mediating nations Qatar and Pakistan said the U.S. and Iran have agreed to a roadmap toward a final peace deal within 60 days following a successful first round of talks.
In China, the CSI index .CSI300 advanced 2.4%, while the Shanghai index .SSEC gained 1.8%. As expected, China left its benchmark lending rates unchanged for the 13th consecutive month in June.
Meanwhile, EM currencies fell against a firmer U.S. dollar =USD. The broader EM currency index .MIEM00000CUS was down 0.3%, while the South Korean won KRW=KFT declined 0.5% to a two-week low.
Elsewhere, Turkish stocks .XU100 rose 0.7% and the lira TRYTOM=D4 firmed. 
South African equities .JTOPI remained flat, while the rand ZAR=D3 edged lower.
Central European currencies depreciated against both the euro EUR= and the dollar.
"The CEE FX market is dominated by a stronger U.S. dollar, similar to the rest of the EM space, following last week's Fed meeting," said Frantisek Taborsky, EMEA FX & FI strategist at ING. "We have seen some pressure on currencies in the region in recent days." 
Stocks in the CEE region were mixed. Hungary .BUX and Romania .BETI edged higher by 0.6% and 0.4%, respectively, but the Polish benchmark .WIG declined 0.3%. 
Polish retail sales growth accelerated in May though it fell short of analyst forecasts. Meanwhile, Polish corporate wages rose by an annual 5.8% in May, below expectations for a 6.0% rise. 


HIGHLIGHTS:
     
** SK Hynix overtakes Samsung to become South Korea's most valuable company
** China targets US rare earth and other firms with export controls
** South Korea market watchdog offers rare mea culpa over leveraged ETFs
     
     
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For RUSSIAN market report, see RU/RUB

 (Reporting by Avinash P and Ragini Mathur in Bengaluru; Editing by Thomas Derpinghaus)
 ((Avinash.P@thomsonreuters.com;))