Emerging markets are home to dynamic, fast-growing industries such as artificial intelligence, fintech, and medical technology, offering investors far more than traditional old-world sectors. With internet champions, rising middle classes, and structural megatrends driving long-term growth, the opportunity set in EM is both diverse and compelling.

The prospect of US monetary easing and a weaker USD could mark an inflection point for emerging market equities, with liquidity set to rotate out of the US and into these markets. After a decade of headwinds, high-quality companies in China, Vietnam, Indonesia, and Brazil now appear increasingly attractive and well positioned to benefit from the next cycle of USD weakness.

While tariffs from the US are consistently making headlines, their effect on the emerging economies can often be overlooked by investors. Speaking with Joseph Lai, principal and chief investment officer at Ox Capital, he explains thoroughly how investors can capitalise from opportunities presenting around the theme.

Vietnam is rapidly emerging as one of Asia’s most dynamic growth markets, driven by sweeping reforms, record infrastructure investment and a digitally empowered population. On the ground, momentum is building across sectors from expressways and metros to e-commerce and private enterprise, signalling a structural shift in the country’s economic trajectory.

China is transitioning from a construction-driven economy to one focused on innovation and high-value industries, with global leaders emerging in sectors like EVs, robotics, and renewables. While the property market adjustment has been challenging, signs of economic recovery and sustainable growth are becoming evident.

While US equities stumble under the threat of tariffs and a record budget deficit, and the ASX pulls away from its highs, the Hang Seng has quietly staged returns of more than 25% year to date. So is the era of Chinese weakness over?

The rise of Chinese innovation, exemplified by platforms like DeepSeek, TikTok, and Temu, highlights the country’s rapid technological advancements driven by intense domestic competition and a shift toward high-quality, sophisticated products. With a strong foundation in robotics, renewable energy, and AI, China is poised to extend its cost and quality advantages globally, reshaping industries and challenging traditional leaders in the tech and manufacturing sectors.

Fleeing a potential TikTok ban, millions of American users joined RedNote, skyrocketing its downloads worldwide. This unexpected migration fostered cross-cultural exchanges, breaking stereotypes and sparking newfound interest in Chinese culture.

DeepSeek’s latest open-source AI model has stunned the industry by matching top-tier performance at a fraction of the cost, challenging closed-source giants like ChatGPT. Its success highlights the potential for cost-efficient AI development and raises questions about the future of open-source innovation in a rapidly evolving field.

In the 2025 outlook, Dr. Joseph Lai explores investment opportunities within emerging markets. With attractive valuations, robust economic growth, and high-potential regions like China, Vietnam, and Indonesia, these markets present a strategic advantage. He also highlights the transformative impact of AI advancements, positioning these markets as key drivers of global innovation.