Emerging Markets Hardest Hit by China Crackdown, Virus Outbreaks
- Widening vaccination gap, concern on China weigh on sentiment
- EM assets have been underperforming developed peers this year
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Increased investor concerns about China and a widening vaccination gap will keep pressure on emerging-market assets relative to their developed peers, according to some market participants.
China’s sweeping clampdown of its technology sector at a time when its economy is slowing has helped push a global gauge of emerging-market shares to a 17-year relative low against their developed-market peers. The spread of coronavirus variants has also weighed, with vaccine rollouts in developing nations lagging those in the likes of North America and Europe.