Emerging-Market Stocks Jump to Record High on AI Optimism

Emerging-market stocks climbed to a record high, propelled by Asian technology shares as optimism around artificial intelligence persists and investors continue pouring money into the developing world.

An MSCI Inc. index of developing-market stocks rose as much as 0.8% to 1,561.71 on Wednesday, surpassing an intraday all-time high set on Jan. 29. Benchmarks from South Korea to Mexico and Brazil are hovering near record levels.

The rally follows strong gains of more than 30% in emerging-market stocks last year, driven by Asian markets like Taiwan and South Korea. The region is a beneficiary of high demand for AI-related hardware, including semiconductors.

BlackRock Investment Institute strategists see opportunities in AI-linked names across the asset class, and expect the rewiring of global supply chains to benefit countries such as Mexico, Brazil and Vietnam.