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Emerging World's Three Biggest Stocks Are Now Down $170 Billion

Cindy Wang
Emerging World's Three Biggest Stocks Are Now Down $170 Billion

(Bloomberg) -- May is proving painful for emerging-market investors as three of their tech favorites have taken a beating due to the China-U.S. impasse.

Tencent Holdings Ltd., Alibaba Group Holding Ltd., and Taiwan Semiconductor Manufacturing Co., the three biggest stocks on the MSCI Emerging Markets Index, have lost a combined $170 billion in value this month. That is more than the market caps of HSBC Holdings Plc or Kweichow Moutai Co., 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. The Trump administration is considering barring Chinese video-surveillance firms from buying U.S. technology and has already blacklisted Huawei Technologies Co.

TSMC’s 3.4% drop Thursday, 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 Emerging Markets Index is down 8.4% this month, in line for the most since October.

--With assistance from Matt Turner.

To contact the reporter on this story: Cindy Wang in Taipei at hwang61@bloomberg.net

To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Philip Glamann, Magdalene Fung

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