Following the implementation of tariffs by the Trump administration, which initially targeted various countries, including China, Vietnam, Taiwan, and Mexico, emerging markets faced significant declines.
The MSCI Emerging Markets Index saw a sharp drop. However, it has since recovered, even surpassing the global market's performance.
South Korea's KOSPI index has shown remarkable resilience, rising over 13% since May, reaching levels last seen in late 2021. This surge is partly due to the strong performance of South Korean cosmetic companies.
Other emerging markets, such as Taiwan, have also shown recovery, with its stock market increasing by over 9% since May. However, markets in Mexico, China, and Brazil have experienced more modest gains.