After a long period of doing worse than stocks in the developed world, emerging markets have outperformed handsomely in 2025.

Up to the end of August the MSCI Emerging Markets index was up 19% versus 13.8% for the broader MSCI World index.

A weaker dollar has been a big factor but which markets have contributed the most to this strong showing? The table shows how some of the most prominent emerging markets have done so far this year. The heavy weighting of Chinese shares in the broader MSCI Emerging Markets index (more than 30%) means their robust advance has undoubtedly been helpful.

Both domestic-facing and multinational Chinese names have performed well – with both the Hang Seng and SSE Composite indices achieving double-digit gains.

Another very strong performer is the Brazilian market – helped by limited exposure to US tariffs and resilient domestic economic growth. In contrast it has been a much quieter year for Indian stocks after an impressive run over a number of years which has driven valuations to new highs.

This outlook is part of a series being sponsored by Templeton Emerging Markets Investment Trust. For more information on the trust, visit www.temit.co.uk

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