Emerging Markets Face Turbulence Amid Global Economic Shifts

Emerging market stocks experienced a decline due to weak earnings guidance from ASML, affecting Taiwanese and South Korean markets. Currencies remained steady as investors awaited ECB's decision on interest rates. Geopolitical tensions and economic forecasts contributed to the cautious investor sentiment.

Emerging market stocks saw a drop on Wednesday as Taiwanese and South Korean markets were hit by disappointing earnings announcements from Dutch firm ASML.

The MSCI index for these markets dipped 0.6% by 0830 GMT, marking a three-week low amid lackluster expectations for ASML's future sales and bookings.

Investors are keeping a close watch on the ECB's forthcoming interest rate decision, with expectations of a 25-basis-point cut, while factors such as geopolitical tensions and cautious U.S. economic outlooks add to market uncertainty.

(With inputs from agencies.)