Emerging world’s 3 biggest stocks down US$170b


TAIPEI • May is proving painful for emerging-market (EM) investors as three of their tech favourites have taken a beating due to the China-US impasse.

Tencent Holdings Ltd, Alibaba Group Holding Ltd and Taiwan Semiconductor Manufacturing Co (TSMC), the three biggest stocks on the MSCI EMs Index, have lost a combined US$170 billion (RM712.79 billion) in value this month.

That is more than the market caps of HSBC Holdings plc or Kweichow Moutai Co Ltd, the world’s most valuable distiller.

The slide by those stocks comes as the dispute between the world’s two biggest economies changes its focus from trade issues to tech companies.

US President Donald Trump’s administration is considering barring Chinese video-surveillance firms from buying US technology and has already blacklisted Huawei Technologies Co Ltd.

TSMC’s 3.4% drop yesterday, the biggest since Jan 4, came as investors worried the foundry will lose sales because chip designer ARM said it will comply with the order to stop supplying Huawei. Tencent fell 3.8% to its lowest since Jan 14.

The MSCI EMs Index is down 8.4% this month, in line for the most since October. — Bloomberg