To diversify your portfolio, consider these three promising emerging-market stocks

The JPMorgan Global Emerging Markets Income Trust's portfolio manager, Omar Negyal, identifies three emerging-market stocks that he would invest in

Over the course of 2025, emerging markets gained attention against the backdrop of a volatile world. As investors evaluated the possible effects of tariffs on international trade and growth, increased geopolitical tensions and uncertainty over US trade policy led to sporadic periods of weakness.

But these worries also contributed to the US dollar's decline, which has generally helped emerging markets by reducing financial strains and enabling more lenient policy. As some investors started to reevaluate the dangers of becoming overly concentrated in US assets and actively diversified into other markets, this trend was strengthened.

Opportunities in emerging markets have remained uneven in this context, and the recovery has unfolded differently by nation and industry, with a more cautious but improving outlook in China, stronger momentum in some parts of Europe, and technology-linked markets in Asia. Active stock selection is crucial in this context. Our investment philosophy is reflected in the following three stocks.

Prioritize technology in order to capitalize on emerging markets.

The National Bank of Greece (Athens: NBG) is an example of how parts of the European financial system are still being repaired. With the help of strengthening macroeconomic fundamentals, resilient private consumption, and a steady decline in public debt, Greece has become one of the more obvious recovery stories, returning to investment-grade status.

After a protracted period of reorganization, NBG now enjoys a sizable deposit base and robust capital ratios. After a 16-year break, dividend payments have resumed, which is indicative of the company's improved operating and balance sheet positions as well as a more stable domestic environment.

Taiwan Semiconductor Manufacturing Company (Taipei: 2330) offers direct exposure to ongoing investments in cloud computing and artificial intelligence. The demand for advanced semiconductors, where manufacturing capacity and scale are crucial, has increased due to increased capital expenditure by multinational technology companies. TSMC, the world's top manufacturer of cutting-edge chips, stands to gain a great deal from this demand. Applications ranging from cloud infrastructure to artificial intelligence are supported by its technology, and Taiwan's significance as a semiconductor hub is further reinforced by its place in international supply chains. TSMC is now in a strong position to profit from ongoing investments in cutting-edge computing capacity thanks to this combination.

One of China's biggest internet platforms, Tencent (Hong Kong: 700), offers cloud services, digital advertising, and online gaming. AI-enabled advancements in advertising, unexpectedly high gaming revenues, and a rebound in the cloud business have all contributed to earnings growth. Additionally, the company has become more focused on capital discipline, as evidenced by its increased emphasis on shareholder returns and dividends.

Despite China's more diverse market environment, this progress has been made. While innovation continues to be a key characteristic of the technology industry, targeted policy measures have recently helped to stabilize sentiment. China's ongoing involvement in AI is highlighted by developments like the introduction of the DeepSeek AI platform, which supports the longer-term demand for cloud, software, and digital servicesareas in which Tencent is still in a strong position.