Emerging markets hardest hit by China crackdown, coronavirus outbreaks

China's sweeping clampdown of its tech 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 developed-market peers

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.

US and European stock markets are expected to continue to outperform, as advanced economies rebound, travel resumes