Emerging Markets Face U.S. Inflation Jitters Amid Trump's Influence

Emerging markets stocks fell due to U.S. inflation concerns and the impact of Trump's election victory. Indian equities neared correction territory, while Moroccan stocks rose. Trump's policies could affect global markets, with implications for inflation and tariffs, as investors anticipate U.S. inflation data and monitor global developments.

The emerging markets stocks index fell to its lowest in two months as Indian equities approached correction territory. Investors are on edge ahead of U.S. inflation data that could impact the Federal Reserve's stance on monetary policy amid Donald Trump's presidency.

U.S. inflation data, due at 1330 GMT, holds potential to stir uncertainty. Since Trump's election win, emerging market assets have been under pressure with the dollar and Treasury bond yields soaring. Trump's policies on taxes and tariffs might further boost the dollar and inflation.

In other markets, Morocco's stocks experienced notable gains of over 20% this year. Meanwhile, concerns loom in Hungary and Ukraine about potential economic impacts from Trump's policies, while India's stock market faces challenges due to sluggish earnings and foreign investor activity.

(With inputs from agencies.)