Emerging markets had a rough week. Indian shares gave up more than 1,000 points on the Sensex in a single session, and Indonesia’s market crash turned political when Singapore rejected claims that it had rigged the fall. Here is what was reported, and how our emerging-market portfolios stand.
India’s sharp fall
On 21 October the Sensex fell more than 1,150 points from its high of the day and the Nifty dropped below 22,800, according to Indian financial press. The same week Marco Rubio, visiting India, said a US and India trade deal was very close and that US tariffs were not meant to punish India. Markets did not wait for the details.
Indonesia’s crash and the row with Singapore
Indonesia’s recent stock market crash has been described in the Jakarta press as a wake-up call for the country’s retail investors. This week Singapore publicly rejected claims that it had a hand in the fall. Disputes like this rarely change a market’s direction on their own, but they are a reminder that smaller markets can move on politics as much as on profits.
How emerging-market portfolios have done
| Portfolio | 1 month | 3 months | 1 year | S&P 500, 1 year |
|---|---|---|---|---|
| India & Emerging Markets Banks Index10 companies | −1.5% | −0.8% | +4.9% | +14.4% |
| India Manufacturing Renaissance Index10 companies | +3.4% | +4.3% | −1.6% | +14.4% |
| ASEAN Growth Index10 companies | −21.8% | −20.9% | −39.4% | +14.4% |
| Korea Tech & Memory Index7 companies | −18.1% | −8.9% | +36.6% | +14.4% |
| Saudi Vision 2030 Index10 companies | −10.2% | −11.6% | +15.5% | +14.4% |
| Latin America Fintech Index8 companies | +1.4% | +2.7% | −11.3% | +14.4% |
Prices up to 22 October 2026. Returns before each portfolio was made are simulated from real past prices, with no fees or taxes. Past performance is not a guide to the future.
As of 20 October the gap between regions was wide. Our ASEAN Growth portfolio was down about 40% over a year, while Korea Tech and Memory was up about 39%. The two India portfolios were close to flat over three months.
Before you buy a falling market
- Currency counts. A local market can rise while your return in pounds or dollars falls.
- Concentration counts more. Many emerging-market indices are dominated by a few banks or one tech company.
- Check what is actually available to you. Arithmos can pick from India, Indonesia, Thailand, Brazil and other markets, but your broker may not offer all of them.
Arithmos is a research tool. Nothing here is investment advice.
