which came first the rally in emerging
markets or the boom in its tech stocks
the tech sector has become the biggest
single grouping in the e/m universe this
year and now for the first time since
the dot-com boom q several as yet
unsuccessful efforts to label Ian's
Tech's with a catchy equivalent to the
US bangs Facebook Amazon Netflix on
Google but equating the e/m sector with
hot us tech sells its short hardware as
well as internet enthusiasm is what's
driving this rally emerging market
equities are enjoying their best year
since 2009 and the benchmark index is up
17% earnings upgrades are the biggest
driver particularly in Asia which is
two-thirds of the index and that and
it's all of its tech stocks to even
profits of unloved Chinese groups are
generally expected to rise giving a ZEM
stocks when their best ever runs of
improving profit forecasts that's 12
months and Counting now that tech sector
up 38 percent this year has led the
advances within that the leaders include
$0.10 and Alibaba up 43 percent and 62
percent respectively they're not the
only beneficiaries Samsung Electronics
is up 35 percent and it might become the
world's biggest chip maker Taiwan
Semiconductor the world's biggest chip
foundry has gained 18 percent combined
for have added 325 billion US dollars in
capitalization tech hardware stocks are
benefiting from several trends one is a
perennial optimism around the rise in
emerging market economies disposable
income as a middle class develops
another more specific theme is a rising
global demand for chips and other
specialized components to power an
increasing range of devices that we all
like now after years of consolidation
supply particular chips is limited and
most of that sits in emerging Asia
there's also the looming launch of
Apple's iPhone 8 models now speculation
abounds as to who which company has got
which share in the orders about a third
of Taiwan's tech sales our iPhone
related according to Citigroup yet in
spite of the rally and the hype Ian's
techs are still cheaper than the US
counterparts
they're trading on 15 times earnings
compared with 18 times now that might
spare tech lovers whether they're an
Internet enthusiast backing Alibaba or
fans of Samsung to push this rally
further still