MSCI EM gained 1.3% w/w, led by Tech/North Asia; Rate-sensitive pockets lagged amid a spike in US bond yields; Brazil in focus ahead of First-round Elections on October 4th

MSCI EM gained 1.3% w/w, led by AI-exposed North Asia (Korea +4%, Taiwan +2%), while rate-sensitive markets such as Indonesia and South Africa lagged amid a spike in US bond yields. MXEF trades at about 9.9x forward P/E, with 2026E EPS revised up slightly. EM equity funds saw net inflows led by Taiwan and India, while Korea saw outflows. On macro, SARB delivered a hike in South Africa, while Mexico, Egypt, Hungary, Indonesia and China stayed on hold. The first focus is Brazil's elections: Brazilian equities have held on to gains of more than 10% since mid-August, with attention on the first-round vote on October 4th;