TSM - TSMC Samsung Lead Recovery In Asia's Emerging Markets With AI And Chip Sector Growth | Benzinga
Following deep losses in 2022, many emerging market assets were at bargain valuations and the recovery began in late 2022, driven by tech stocks such as Taiwan Semiconductor Manufacturing Co (NYSE:TSM) and Samsung Electronics Co (OTC:SSNLF).
Emerging market equities — particularly in the manufactured goods sectors — are deeply tied to the cyclical performance of the U.S. economy, relying on exports to the world’s biggest consumer market.
The iShares Core MSCI Emerging Markets ETF (NYSE:IEMG), an exchange traded fund that includes both TSMC and Samsung among its top holdings, hit a record-high close of $70 in February 2021 as the clamor for new tech from COVID-19 lockdown-restricted U.S. consumers drove domestic shares of both companies to all-time highs.
But, as the Federal Reserve embarked on its rate hike cycle in 2022 — that would eventually see U.S. rates hit 5.25-5.5% in mid 2023 — EM equity markets collapsed.
The IEMG ETF slumped 41% from its 2021 peak to an October 2022 trough of $41.44.
At this point, many emerging ...