Chip Crash Hits Emerging Markets Hard

A sharp selloff in semiconductor stocks dragged down Asian markets on Tuesday, pushing a key emerging-market stock benchmark to its lowest level in over three months. The drop came as investors awaited the Federal Reserve’s next interest rate decision, due Wednesday. The selloff, centered on chip makers, spread across Asian bourses and weighed heavily on emerging-market equities. Currencies in those economies showed mixed results, with some strengthening and others weakening against the dollar, as traders held off on major bets ahead of the Fed’s announcement.