Asia Tech Stocks Diverge From U.S., With Biggest Gap Since 1998

Tencent, Samsung hit as they sink more than 13% this year
Company-specific news, U.S.-China trade remain concerns

"We are very bullish long term on the growth fundamentals of Asia," says JPMorgan’s Andrew Cohen.(Source: Bloomberg)

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By Divya Balji

September 13, 2018 at 3:24 AM UTC

Updated on

September 13, 2018 at 4:43 AM UTC

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Tencent Holdings Ltd. is no Apple Inc., and technology shares in Asia are feeling it: the sector is diverging from its U.S. counterpart by the most in two decades.

The MSCI Asia Pacific Information Technology Index has slumped 11 percent this year, while its S&P 500 Index version has rallied 17 percent. That’s because company-specific news and the impact of industry demand have become front and center for Asia’s behemoths.