(Bloomberg) — Emerging-market stocks dropped for a third day as investors grew increasingly concerned about President Donald Trump’s plan for a new set of sweeping global tariffs.
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A gauge of developing-nation stocks fell 1.6%, reaching the lowest intraday level since March 13. Taiwan stocks were hit especially hard, with the Taiex closing down 4.2% and finishing the day down more than 10% from a recent high and falling into a correction.
Across global markets, investors were selling shares ahead of the April 2 deadline for the next round of US tariffs and getting ready for a busy week of economic data and the US jobs report on Friday.
“Not only do we get reciprocal tariffs on Wednesday, but we also get important U.S. data throughout the week that culminates in the jobs report Friday,” Brown Brothers Harriman strategists Win Thin and Elias Haddad wrote in a note to clients. “We believe the data will surprise to the upside, which would give the dollar a much-needed boost and keep downward pressure on emerging-market FX.”
For the quarter, emerging-markets are set to finish with gains. The MSCI Emerging Market Currency Index has risen 1.7% in the first quarter and the stocks index is up 2.6% on anticipation that a greenback weakness and slowing US economy will lead investors to shift away from US assets.
Meanwhile, the South African rand strengthened against the dollar on optimism that a budget deal between members of the governing coalition is imminent. The Democratic Alliance and the African National Congress have signaled progress in resolving their impasse that has delayed adoption of the budget.
Elsewhere in Asia, Thailand stocks dropped 1.4% as trading resumed following Friday’s earthquake in Myanmar that caused widespread damage.
Authorities took steps to try to calm investor nerves. The overall fundamentals of companies listed on the Thai stock exchange remain strong, said Asadej Kongsiri, president of the Stock Exchange of Thailand.
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