Emerging Markets Tumble Amid Adani Allegations and Geopolitical Tensions

Thursday saw a decline in emerging market stocks, significantly impacted by Indian shares linked to the Adani Group following allegations against its chairman, Gautam Adani. Geopolitical tensions and interest rate decisions in countries like South Africa and Turkey have added to the market's instability, affecting various currencies.

Emerging market stocks saw a notable decline on Thursday, driven by significant losses in Indian shares linked to the Adani Group. This drop followed serious allegations against billionaire Gautam Adani by U.S. prosecutors, accusing him of orchestrating a $265 million bribery scheme in India. The Adani Group has denied these claims as baseless.

Global market volatility intensified as geopolitical tensions, particularly between Russia and Ukraine, added pressure on emerging market currencies, which are considered high-risk. Russia's recent use of an intercontinental ballistic missile in Ukraine has kept investors cautious. Currencies like the South African rand and the Turkish lira are exhibiting mixed responses to anticipated interest rate adjustments in their respective countries.

The Central Eastern Europe region is also experiencing market strain, with Hungary's forint depreciating against the euro. In East Asia, stock indices in South Korea and Taiwan closed lower amid disappointing forecasts from U.S. tech giant Nvidia, failing to boost market sentiment in the tech sector.

(With inputs from agencies.)