Global Markets
Home›Global Markets›Emerging Markets›Semiconductor selloff drags emerging-market stocks to…
Semiconductor selloff drags emerging-market stocks to 3-month low
MSCI developing-world shares fell 3.5% by midday New York time, while oil moving below $85 a barrel left currencies mixed ahead of the Fed decision.
A selloff in semiconductor stocks pressured Asian equity markets and pushed the emerging-market benchmark to its lowest intraday level in more than three months, with currencies trading mixed as investors looked toward the Federal Reserve’s upcoming decision.
According to a Bloomberg-cited quick read carried by LiveMint Markets, an MSCI Inc. index of developing-world stocks was down 3.5% as of 12:00 p.m. New York Tuesday. The sharp pullback in Asia technology shares offset gains in Latin America equities, while markets in Budapest, Prague and Warsaw saw only modest losses.
LiveMint Markets reported that Latin America was less exposed to AI-related stocks, though FX could be pressured by lower oil prices. Oil fell below $85 a barrel amid signs of deescalation in the Middle East, helping energy importers, with Chile’s peso up 0.6% and outperforming other Latin American peers.
In South Korea, the weakness spread beyond chipmakers, with trading suspensions on Tuesday. The Kospi Index plunged nearly 11%, while Samsung Electronics and SK Hynix fell more than 13% each, and volume in the Direxion Daily MSCI South Korea Bull 3X ETF surged to about five times its daily average at points, according to LiveMint Markets.
Latest closeKospi 6,755.75 ▲1.0%