Recession worries hand emerging stocks worst first half since 1998

Emerging-market (EM) equities are on track for their worst first-half performance in 24 years, as investors fret over high inflation and a potential hit to the global economy from monetary tightening.

The MSCI EM Index has fallen about 17 per cent this year through Monday - the second-steepest plunge for the period in data stretching back to 1993. The benchmark slid more than 20 per cent during the first six months of 1998 when the Asian financial crisis upended markets. A few months later, Russia defaulted on its local debt. 

Once again, plenty of clouds hang over developing country assets: