Joseph Lai highlights Indonesia as a rare value opportunity, with market dislocation, renewed fiscal spending and stabilising regulatory conditions setting the stage for recovery. He sees standout potential in high‑yielding banks like Bank Mandiri and Bank Negara Indonesia, as well as Telecom Indonesia, while maintaining a constructive view on commodities including gold, silver and copper amid shifting global demand trends.

Joseph Lai suggests that emerging markets may be at the start of a powerful comeback as easing US‑dollar pressures, cheap valuations and strong growth trends begin to re‑highlight long‑overlooked fundamentals. He points to countries like Indonesia and Vietnam as standouts benefiting from structural tailwinds.

After more than a decade of underperformance, emerging markets are strengthening as sound fiscal management, favourable demographics and rising new industries support growth. With developed markets running “hot” and facing mounting risks, EMs offer compelling opportunities as they continue to heat up into 2026.

Surgical robots have become a sunrise industry in China, with domestic innovators like MicroPort’s Toumai system now matching or even outperforming long standing global leaders. Cheaper, capable technology is accelerating adoption across hospitals, positioning China at the forefront of the next wave of high value medical innovation.

Gold has delivered impressive returns in recent years, but many emerging market companies have far outshone its performance, offering true growth rather than simple value preservation. At Ox Capital, we focus on uncovering these high-quality EM opportunities that can compound returns and become the corporate champions of tomorrow.

Indonesia’s low government leverage, rich natural resources, and a likely rebound in spending under new leadership are setting the stage for a potential market inflection in 2026. With GDP ambitions accelerating, rising money supply growth, and attractive valuations across leading corporates, Indonesia’s next phase of economic expansion may offer a compelling opportunity for investors.

Vietnam is emerging as a compelling growth story, with FTSE Russell set to reclassify it from frontier to emerging market status in September 2026, unlocking potentially US$10 billion in institutional flows. Supported by strong GDP growth, rising incomes, and attractive valuations, Vietnam’s market is increasingly capturing global investor attention as a long-term investment opportunity.

India is undergoing a dynamic transformation fueled by rising incomes, rapid digitalisation, and a booming infrastructure push, supported by a young population, policy reforms, and strong consumer demand. With low debt levels, increasing financial inclusion, and a shift toward organised retail, the country is poised to remain one of the world’s fastest-growing major economies and offers significant opportunities for long-term investors.

Artificial Intelligence has come a long way from its beginnings, but in many ways it is only just getting started. Generative AI is already transforming industries by enhancing productivity and efficiency, and as investment continues to accelerate, Asia is emerging as a key beneficiary of this global technological shift.

Joseph Lai notes that global markets have defied expectations, with US tariffs having limited impact and Chinese equities, particularly in Hong Kong, rallying nearly 40% year to date amid easing US-China tensions. He also highlights a weakening US dollar boosting emerging markets, while investors increasingly turn to gold and crypto as diversification against US debt concerns.