Emerging-Market Stocks Pull Away From China by Most in Decades
- Influence of China on emerging market stocks is waning
- Expectations for Fed rate cuts are bolstering emerging markets
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Emerging-market stocks declined Tuesday, led by Chinese companies that are now trading at their biggest discount to peers from developing nations in a quarter of a century.
Losses on equities in China, whose credit outlook was cut to negative by Moody’s Investors Service on Tuesday, have erased some $500 billion of shareholder wealth this year after major indexes tumbled as much as 16%. A gauge of stocks excluding China, by contrast, has rallied 13%, adding about $2 trillion in market value.