Japan, Brazil in top global equity markets in 2026 so far; US remains strongest wealth creator in 10-year returns

Global equity markets have diverged sharply so far in 2026. Brazil’s Bovespa leads the pack, supported by renewed interest in commodities and emerging markets. Among developed peers, Japan stands out, driven by an artificial intelligence (AI)-led technology rally, while the USA continues to post solid gains, underpinned by resilient large-cap performance despite high valuations.

Source: Bloomberg. *2026 returns are YTD based on 12 May 2026 closing values. Other years' returns are calculated between the first and the last trading day closing values. Returns are normalized to the Indian rupee. The 10-year return is the compounded average return.


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In contrast, Germany’s DAX has lagged major peers after a strong 2025, and Indian equities rank last, reflecting a phase of correction or consolidation. Meanwhile, Chinese markets are showing early signs of recovery following years of relative underperformance. Over the long term, the US remains the strongest wealth creator, aided by dominance of big technology firms. Japan ranks second, benefiting from structural reforms. While India has seen phases of outperformance, its decade-long returns remain moderate compared to leading developed markets.