New Delhi, July 19 -- Emerging markets are expected to remain well placed in the second half of 2026, with attractive valuations, easing inflation and monetary policy support likely to sustain their relative outperformance, while investors may increasingly favour equities linked to artificial intelligence and the broader technology cycle, according to a research report by HSBC.

The report said the global economy faces a complex set of supply shocks, but markets have remained resilient, supported by strong corporate profits. While the outlook remains uncertain and inflation sticky, HSBC maintained a cautious pro-risk stance, favouring access to growth in regions such as Asia and emerging markets.

Emerging market equities delivered a 24 p...