Emerging-market stocks plunged for a second straight day, with the benchmark gauge sinking to a three-and-a-half month low as a rout in Asian chip stocks deepened. The downturn reflects growing investor anxiety over the semiconductor sector, which has historically driven growth across several emerging economies.

Market analysts suggest that the slide is being exacerbated by volatility in the tech sector, particularly within Asian chip stocks. This volatility has triggered a broader sell-off, dragging down benchmark indices and impacting investor sentiment across the region.

As the rout deepens, the focus remains on whether these losses are temporary corrections or indicative of a larger systemic shift in the tech landscape. Traders are closely monitoring the benchmark gauge for signs of stabilization, while the sector continues to struggle under the weight of recent declines. The current trajectory marks one of the most significant dips for these markets in recent months, highlighting the vulnerability of tech-heavy indices to sudden shifts in global demand.