MSCI emerging market stocks index enters technical bear market
MSCI`s widely tracked 24-country emerging market stocks index entered a technical bear market on Wednesday, as fresh selling took its drop since late January to 20 percent.
MSCI estimates that more than $1.9 trillion of assets are benchmarked to the index. Its latest data shows China makes up 33 percent of the index, with other top countries include India, Brazil and Russia at 9 percent, 6 percent and 4 percent respectively.
The sharp drop has come as the threat of a full-blown trade war between China and the United States has scuttled Chinese markets, while political stresses have ramped up in countries like Brazil, Turkey and Argentina, and a strong dollar has hit those who borrow in the currency.
"It is dollar strength, Trump`s trade wars and Fed tightening," said Renaissance Capital`s global chief economist and head of macro-strategy Charles Robertson. "They are an ugly combination for emerging markets."
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.