Asia's Stock Market Is Leaning on Just a Handful of Equities
- Five largest stocks now make up 14% of Asian stock benchmark
- Concentration in Asia stocks still not as bad as in the U.S.
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Asia’s stock market is increasingly reverting to the U.S. trend of dependency on a handful of stocks, with one measure of concentration nearly doubling in a decade to the highest in almost 20 years.
The outperformance of tech giants like Tencent Holdings Ltd. and Samsung Electronics Co., Ltd. has led to the highest level of concentration in the MSCI Asia Pacific Index since 2001, according to data compiled by Bloomberg. The five largest stocks now make up 14% of the Asian benchmark, up from 8% in 2010, compared with about 18% for the S&P 500 Index.