emerging markets

US Treasury yields have moved decisively higher, with the 10-year trading around 5.18% and the 30-year near the 5% mark. Commentators say the shift in borrowing costs is rippling beyond America, pressuring emerging markets such as India through capital flows and currency strain. Investors are watching whether higher-for-longer rates persist.

UBS has offered its view on whether the Federal Reserve's tightening cycle represents a turning point for emerging market assets. The question of how higher US rates affect capital flows to developing economies is a recurring concern for investors, and the bank's assessment is being circulated among market watchers tracking the impact on EM currencies, bonds and equities.

Chinese low-cost, open-source AI models now account for the majority of global developer traffic, according to reports drawing concern in Washington. Officials worry the widespread adoption of Chinese models gives Beijing influence over critical software infrastructure worldwide. Analysts note the models' affordability and open licensing have made them attractive to developers, especially in emerging markets, intensifying US-China competition over AI standards and supply chains.

Asset manager T. Rowe Price is working to ringfence its $165 billion emerging markets portfolio from potential fallout linked to El Niño, according to Bloomberg. The weather pattern can drive food and commodity price swings across developing economies, and investors are weighing how crops, inflation and sovereign risk could be hit. Market watchers are discussing which EM assets are most exposed to the climate pattern.

Meta's growing network of data centers is drawing construction and operations staff to small towns, and purpose-built workforce housing is emerging to accommodate them. Reports describe how developers are building or converting apartments near the sites to serve these workers, a sign of how large tech infrastructure projects are reshaping local housing markets and economies across the United States.

Advanced Micro Devices is being examined for its progress in edge AI computing and life sciences applications, raising questions about what the chipmaker is demonstrating in these emerging markets beyond its core data centre and PC businesses. Commentators are weighing whether its processors and accelerators can win a real foothold in these specialised sectors and what that would mean for investors and competitors.

New research from the Hong Kong Trade Development Council indicates that mainland Chinese enterprises are increasingly adopting comprehensive global business strategies. The survey shows these companies are targeting both advanced economies and emerging markets as they expand internationally, a shift observers see as a sign of growing maturity and ambition among Chinese firms operating abroad.

Meta has unveiled Muse Charm, a pocket-sized device built around its AI assistant. The gadget marks Meta's continued push to move its AI assistant beyond phones and into dedicated hardware, following its AI-enabled glasses line. Details on pricing, availability and full specifications were not included in the initial announcement, leaving industry watchers waiting for more information about how the device will compete in the emerging market for standalone AI gadgets.