Emerging market stocks fell their most in over five months after Republican nominee Donald Trump was elected to be the new US President.
The decline is due to Trump's proposed protectionist policies, which would jeopardize trade deals and immigration to many emerging market countries.
“It is yet another reminder to the establishment that most electorates are unhappy. The big question now is how protectionist the U.S. will become. The most exposed countries in emerging markets include those that are very open, those that send most of their exports to the U.S., and those that rely on net remittances," said Simon Quijano-Evans, a strategist at Legal & General Group Plc.
The MSCI Emerging Markets Index fell 2.5 per cent to 880.15, the lowest closing level since June.
Investors are also wary of a possible Federal Reserve interest rate increase, the probability of which is now 86 per cent, up from 78 per cent last week.
Read more at Bloomberg.