Emerging-market stocks fell to their lowest level in three months after a sharp decline in Asian technology shares weighed on broader risk appetite. The move highlighted how weakness in a major sector can spill across regional markets and drag down sentiment well beyond Asia.
The selloff in Asian tech stocks appeared to be the main trigger for the latest drop in the emerging-markets benchmark. With investors turning more cautious, shares in developing economies came under pressure as traders reassessed exposure to riskier assets.
At the same time, Europe was described as relatively more protected from the wider market stress. A pullback in oil prices helped cushion European stock markets and currencies, softening the impact of the broader decline seen in emerging-market assets.
The market action points to a split trading session in which Asian technology weakness drove losses in emerging markets, while lower energy prices offered some support in Europe. Even so, the drop to a three-month low underlined the fragile mood across global markets.
