Emerging-Market Stocks Erase 2021’s Gains as China Slumps
- MSCI EM stock index slid 2.4% Monday, losing rest of 2021 gain
- China’s crackdown on tech, education has battered EM shares
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China’s stock selloff has caused emerging-market equities to erase all their gains for the year.
The MSCI Emerging Markets Index -- which has more than a third of its weighting in China -- wiped out what was left of its 2021 advance after sliding 2.4% on Monday. Strategists are divided on the outlook. State Street Global Markets prefer developed markets as they are ahead in vaccination rates, while AllianceBernstein says EM assets will be supported by a recovery in risk appetite.