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Chart of the month: the bull and the bear
What's behind the huge performance differential between the NASDAQ and the Hang Seng Tech indices?
After following similar trajectories for the first few weeks of the year, the NASDAQ and the Hang Seng Tech equity indices have since opened up an enormous performance differential.
Clearly, the AI boom has benefitted US companies far more than their Chinese counterparts, or at least the demand for such exposure has not outweighed China’s reopening stumble and regulatory uncertainty. The chart is a good indication of the divergent sentiment towards these themes.
Whatever you think about their longer-term prospects, if such sentiment becomes too extreme, markets are always vulnerable to near-term corrections.
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