Emerging Markets Hammered Amid Global Crisis (Polya Lesova)

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Russia

NEW YORK (MarketWatch) -- Emerging-market assets around the world came under heavy selling pressure on Monday, as the global financial crisis prompted a spike in risk aversion and encouraged investors to dump risky assets.

Led by a 16% plunge in Russian equities, emerging stock markets in Asia, Europe, Latin America, the Middle East and Africa all posted sharp losses. {xtypo_quote_right} "Fears of banking system vulnerabilities are spreading to Asia and Europe. It's not just a U.S. phenomenon. Everyone is becoming increasingly bearish." {/xtypo_quote_right}

Stocks in China, India, Russia and Brazil -- all of the BRIC heavyweights -- were deeply in the red.

In Moscow, the RTS stock index plunged 16%, leading the RTS exchange to suspend trading. In Asia, China's Shanghai Composite index fell 5.2% and India's Sensex index dropped 5.8%.

In Sao Paulo, the Bovespa stocks index tumbled 10% in intraday trading.