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The sell off in the developing world is striking the fastest risers in recent months, notes UBS Wealth Management, rather than those with weaker fundamentals – with equities in Africa, Peru and India down the most since Jan. 26 after a nearly 40% rise last year.
> On Monday, high-flying tech companies were down, with Alibaba Group Holding Ltd. sliding 2%, Tencent Holdings off 2.5%, and Baidu falling 1.5%.

“We’re seeing a correction that’s long overdue but we haven’t seen credit spreads blow out, they are not forecasting a recession. This isn’t sufficient to trigger a change in economic outlook,” said David Kotok, chief investment officer at Cumberland Advisors.

Theoretically, emerging markets are most vulnerable to rising U.S. government yields as investors move away from riskier assets to enjoy relatively higher yields in safer debt.

Read the full article at WSJ