The emerging markets have been hit hard by falling commodities prices, with a tenth consecutive day of decline in emerging market stocks recorded.
Stocks in South America, Asia and India all took a tumble in a massive sell-off prompted by concerns over falling commodities prices and higher US interest rates.
The Morgan Stanley Capital International (MSCI) emerging markets index recorded its tenth day of continuous decline, with South American stocks recording a drop of 6.5 per cent, and Korea losing 2.5 per cent in a single day.
The Indian stock exchange saw such rapid plunging of stock prices on Monday morning that trading was temporarily suspended while officials attempted to calm investors. At its eventual close, it was down four per cent.
The drop is a huge turnaround from just two weeks ago, when soaring commodity prices saw emerging markets hit new heights amid investor confidence over spectacular returns.
However, since May 8th, the MSCI emerging markets index has seen a massive 16 per cent fall.
Despite the drop, many analysts are refusing to get too pessimistic about the prospects for investors in emerging markets, with many believing that the slump is little more than a natural correction for what was highly over-valued stock.