Recession Woes Hand Emerging Stocks Worst First Half Since 1998
- MSCI’s emerging market index has fallen about 17% in 2022
- Concerns about inflation, China virus curbs weigh on sentiment
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Emerging market equities are on track for their worst first-half performance in 24 years, as investors fret over high inflation and a potential hit to the global economy from monetary tightening.
The MSCI Emerging Markets Index has fallen about 17% this year through Monday, the second-steepest plunge for the period in data stretching back to 1993. The benchmark slid more than 20% during first six months of 1998 when the Asian financial crisis upended markets. A few months later, Russia defaulted on its local debt.