Taiwanese and Indian blue chips make up a quarter of the MSCI Emerging Markets index, which has fallen more than 7 per cent from a high in February.
Singapore and Thailand have also faced fresh outbreaks that have weighed on sharemarkets to lesser degrees as Asia faces a prolonged battle with the virus.
‘Situation has reversed’
The region outpaced US and European sharemarkets last year, but over the past six months has faltered, trailing the run of gains that has pushed the S&P 500 and Euro Stoxx 600, a continent-wide benchmark, to new highs this month.
“The situation has reversed this year,” said Mr Garner. “India is experiencing the worst single country surge in COVID cases and deaths thus far with a new variant now identified as one of concern by the WHO.”
Although listed companies in Taiwan and Japan, the world’s third-largest equity market, have performed relatively well, the market is weighed down by a souring outlook for services…