Global Growth Concerns Weigh on Emerging Market Equities

Emerging market equities reached three-week lows amid concerns over global growth. Stocks sold off, with chip stocks hit hardest after Nvidia's significant decline. Key indices in South Korea and Taiwan dropped sharply, and European markets followed suit. Currencies were stable, and debt issuance in emerging markets rose.

Emerging market equities reached their lowest levels in three weeks on Wednesday as global growth concerns sparked a massive sell-off, with chip stocks suffering the most following U.S. firm Nvidia's sharp decline.

At 0835 GMT, MSCI's index for emerging market equities dropped 1.6%, its lowest since August 15. Chips-heavy indexes in South Korea and Taiwan fell 3.2% and 4.5% respectively, mirroring Nvidia's over 9% plunge, the steepest single-day decline in a U.S. company's market value.

The global sell-off impacted European emerging markets, with Poland's benchmark down 0.6% and Hungary's index losing 0.7%. Currencies remained stable, with Poland's zloty trading flat and South Africa's rand appreciating 0.2% against the dollar. Debt issuance in emerging markets surged, exemplified by Vietnam raising $103 million and Indonesia $2.63 billion in bonds.

(With inputs from agencies.)