Emerging Assets Dealt Violent Blow in Worst Stock Run Since 2011
- Investors withdrew $1.9 billion from U.S. ETFs last week
- Hedging costs on emerging-market stocks jump most on record
Are Emerging Markets Prepared to Weather a Selloff?
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The panic gripping emerging-market investors took a turn for the worse on Monday as Chinese equities fell the most since 2007, sending shockwaves across developing countries from the Philippines to South Africa.
The Shanghai Composite Index slid 8.5 percent as concern mounted that China’s economic slump is deepening and government measures to stop it will fail. A further slowing of growth in the world’s second-largest economy would undermine demand for commodities and curtail imports from countries including Brazil, South Africa and Russia -- all of which count China as their biggest trading partner.