A global equity selloff gripped emerging markets Monday as shares in the technology hubs of Taiwan and South Korea plunged, leading the broad MSCI benchmark for the asset class down by the most in more than two years.

The MSCI Emerging Markets Index dropped 3.1% as of 6:10am in London, the biggest loss since June 2022 on a closing basis. That took the gauge’s two-day decline to 5.6%, the worst since March 2022. The benchmark traded at its weakest level since April.

Asian stocks set the tone. The Taiex Index fell 7.8%, heading for the biggest single-day loss in five decades, as the flagship of the developing world’s artificial-intelligence ambitions, Taiwan Semiconductor Manufacturing Co, sank more than 9%.

In Korea, the Kospi index fell almost 7%, led by Samsung Electronics Co Ltd and SK Hynix Inc. Earlier, authorities had to halt sell orders for program trading after Kosdaq 150 futures plunged by more than 6%.

World equities are facing losses amid concerns the Federal Reserve is too late to provide policy support to a slowing economy, and that artificial-intelligence stocks may have run up further than their earnings potential justifies. The EM stocks benchmark is down by more than 8% since a peak on July 11.

  - Bloomberg