Emerging-Market Stocks Rise as Alibaba, TSMC Join AI Hot Streak
Emerging-market stocks rose for a third day, led by Alibaba and TSMC, as optimism over US-China trade talks boosted demand for AI-related tech shares.
Emerging-market stocks extended their winning streak to three days, driven by technology heavyweights Alibaba Group Holding Ltd. and Taiwan Semiconductor Manufacturing Co. Ltd. joining a rally in AI-related shares.
The MSCI Emerging Markets Index rose 0.7%, bringing its month-to-date gain to over 7%. Taiwan Semiconductor Manufacturing Co. Ltd., Alibaba Group Holding Ltd. and Samsung Electronics Co. Ltd. together accounted for more than 100% of the index's advance, meaning other stocks dragged on performance. The rally was fueled by expectations that President Donald Trump's summit with Xi Jinping could thaw US-China relations, boosting demand for artificial intelligence hardware and services.
For equity traders, the surge in EM tech stocks reflects a rotation into high-beta names amid improving trade sentiment. AI-related companies are particularly sensitive to cross-border supply chain dynamics, and any easing of tariffs or restrictions could unlock significant upside. Investors tracking these moves can monitor real-time pricing on NowPrice's stocks page to gauge momentum in key EM tech names.
Looking ahead, markets will focus on the outcome of the Trump-Xi summit for concrete trade agreements. Any signs of a tariff rollback or renewed technology cooperation could further lift EM equities, while a breakdown in talks might trigger profit-taking. The next catalyst for AI stocks will be earnings reports from major chipmakers and cloud service providers in the coming weeks.