(Bloomberg) -- Developing-world stocks plunged as concerns about a US economic slowdown sent volatility surging across global financial markets.
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An MSCI Inc. gauge for emerging-market equities ended the session 4.2% lower on Monday, capping its worst day since February 2022. Asian technology shares led declines as traders weigh the odds of an emergency interest-rate cut by the Federal Reserve amid fears of a recession.
The selloff abated throughout the session as Latin American stocks moved well off their lows. But given the region’s relatively small weighting on the broader index, it did little to pare overall losses.
“It will probably be cautious and volatile for a few weeks,” said Andres Calderon, a portfolio manager at RVX Asset Management LLC in Miami.
Emerging markets trade at 11.6 times their blended-forward 12-month earnings, slightly below their 10-year historical average of 11.9 times, according to data compiled by Bloomberg.
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