Economics
The $2 Trillion Emerging-Stock Drop Fixing All Eyes on China
- Drop in market value was most since post-Lehman panic
- MSCI Emerging Markets Index had worst month since 2012
Will We See More Crises in Emerging Markets?
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The August meltdown that wiped more value off emerging-market stocks than at any time since the collapse of Lehman Brothers Holdings Inc. has gotten investors more fixated than ever on China’s economic fortunes.
As the shock Chinese yuan devaluation sent at least half of the main developing countries into bear-market territory last month, the capitalization of the 31 largest emerging equity markets slid by $2 trillion, according to data compiled by Bloomberg. The selloff continued on Tuesday as worse-than-expected manufacturing figures out of China sent the MSCI Emerging Markets Index tumbling 2.2 percent by 3:27 p.m. in London.