EM WEEKLY KICKSTART: MSCI EM fell 0.7% w/w amid a hawkish Fed hike; Oil / US yields eased from highs; Turkey saw sharp declines from regulatory actions; Focusing on CEE markets amid Gas risks and Local catalysts

MSCI EM fell 0.7% w/w amid a hawkish Fed hike, though it recovered some losses late in the week as US yields and oil eased from highs. Turkey saw sharp declines (-5%) from regulatory action on select investment funds, while Colombia, Philippines and Egypt lagged (down 4%-6%) and Taiwan gained 2%. EM equity funds saw US$7.4bn of FII outflows, led by Korea (-US$6.5bn) and India (-US$0.4bn). Macro: Brazil's Copom delivered a 25bp cut, Czechia and Taiwan central banks were on hold, and mixed China August activity data prompted a 3Q GDP forecast cut. MXEF trades at 9.6x fwd P/E (-2.3 s.d. vs 10yr avg) with 2026E EPS revisions flat w/w. Focusing on CEE, we expect local catalysts and micro opportunities to drive divergence amid macro vulnerabilities from higher gas prices;