Foreign Stocks Can't Escape U.S. Downdraft
Posted on October 30, 2009 at 18:45 PM EDT
Does it matter to a Chinese search engine or to an Indian bank that the U.S. market is in a correction? Yes. As the U.S. market sells off, foreign stocks listed on the Nasdaq or NYSE are just as susceptible to this market's trends. Case in point: KongZhong (KONG), a Chinese wireless services provider, gapped high on Friday's opening and rose as much as 7% before reversing lower. By day's end, the small cap ceded all its gains and actually lost 1%.