Emerging Markets Face SATT Problem to Rival Nasdaq's FAANG Woes
- Samsung, Alibaba, Tencent, Taiwan Semiconductor driving gains
- Narrowness of the two rallies has UBS, Pictet, BNP concerned
The increasing gravitational pull of Asian technology giants such as Samsung Electronics Co. and Alibaba Group Holding Ltd. has investors concerned the group is developing the same outsized influence on emerging markets as the so-called FAANG group has been exerting on U.S. equities.
Samsung, Alibaba, Tencent Holdings Ltd. and Taiwan Semiconductor Manufacturing Co. together accounted for 32 percent of total gains in the MSCI Emerging Markets Index this year through Thursday, data compiled by Bloomberg show. Alibaba and Tencent each contributed at least 9 percent. That’s eerily similar for some to the phenomenon known as FAANG -- Facebook Inc., Apple Inc., Amazon.com Inc., Netflix Inc. and Google parent Alphabet Inc. -- stocks that’ve delivered 50 percent of the Nasdaq 100 Index’s gains this year.