Emerging Markets Under Pressure: Thanksgiving Trading Dip and Global Uncertainty

Emerging market stocks dropped to their lowest levels in 11 weeks, influenced mainly by declines in key Asian markets. Thin trading was expected due to the U.S. Thanksgiving holiday. Global economic uncertainties, including U.S. trade policies under President-elect Trump, have kept investors cautious.

Emerging market stocks plunged to their lowest point since September, with a benchmark index falling by 0.7% amid low trading activity due to the U.S. Thanksgiving holiday. Key Asian markets like Hong Kong's Hang Seng and India's Nifty 50 registered significant declines, intensifying investor concerns.

The broader downward trend extended to emerging European currencies, as Hungary's forint dropped to its lowest level since December 2022. Meanwhile, Russia's rouble stabilized after severe losses the day before. Russia's central bank announced a temporary halt to foreign currency purchases, pushing them off to 2025.

South Africa's rand fell 0.4%, adding to investor anxiety driven by global economic policies under President-elect Donald Trump, especially the risk of a trade war. As some markets fell, others like Sri Lanka's bonds and Mexico's peso showed resilience, reflecting diverse regional responses to the uncertain economic landscape.

(With inputs from agencies.)