A closely followed gauge of emerging markets equities slipped into correction territory, peaking uncertainty over US trade policies and concerns about the outlook for China's economic growth.
The MSCI EM index closed 0.4 percent lower on Thursday at a four-month low of 1,066.47. That took the gauge's decline since October's nearly 20-month high above 10 percent, the threshold for correction.
Emerging market stocks have come under pressure in the last quarter of 2024 as Donald Trump won the US presidential election and traders are worried about the negative impact his proposed tariffs and other policies could have on the country's trading partners.
Chinese stocks have sold off in recent months not only because of the potential impact of US tariffs but also because Beijing's economic stimulus package fell short of investor expectations. At more than 27 percent, Chinese equities represent the largest country weighting in the MSCI EM index.