A closely-watched gauge of emerging market stocks tipped into correction territory, a culmination of uncertainty over US trade policy and concerns about China's economic growth outlook.
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 from October's near 20-month high above 10 percent, the threshold for a correction.
Emerging market stocks came under pressure in the final quarter of 2024 as Donald Trump won the US presidential election and traders worried about the adverse 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 has fallen short of investors' expectations. At more than 27 percent, Chinese shares represent the largest individual country weight in the MSCI EM index.
