Emerging-market stocks slide for a second day as the AI selloff spreads

Emerging-market stocks are having a rough week. The benchmark emerging-market equity index fell for a second straight day, dragged lower by a fresh selloff in AI-linked technology shares. Where the pain is concentrated The damage is not spread evenly. It is clustered in the markets that host the world’s biggest chipmakers, which also happen to carry outsized weight in the MSCI Emerging Markets index. On July 17, 2026, the MSCI Emerging Markets index dropped 2.6% to 1,620.66 as worries about AI valuations swept through tech stocks. That session pushed the benchmark into correction territory, meaning a decline of more than 10% from a recent high. Taiwan took a particularly heavy hit during that July stretch, with its stocks sliding 6.5%. The MSCI EM index has previously lost between 2% and 3.8% in individual sessions during tech selloffs. Some of those were tied to cautious outlooks from companies such as Broadcom. Korea’s chip giants under pressure By early October 2026, the MSCI emerging Asia index had fallen nearly 3.5% as Asian equities sank to two-month lows. The KOSPI posted multiple sessions with losses exceeding 5% to 6%. Shares of Samsung Electronics and SK Hynix fell betwee...