The S&P 500 on the other hand lost 2.1 per cent.

Investors began pulling money out of emerging markets and the South African Rand fell to a 5-year low. Weak data from China and political concerns in countries like Argentina, Turkey and Ukraine aggravated the fall.

In India, the rupee fell to a 7-week low as investors dumped equities and there was a net sales figure in the cash market by foreign institutional investors. Ukraine's Hryvnia sank to a four-year low, according to a Bloomberg report.

The MSCI Emerging Markets Index lost 1.5 per cent, as investors sold emerging market assets. There were worries that the US Federal Reserve may further ease its QE3 programme, at its policy meeting next week, which saw frenzied selling.

Dealers say that there might be more downside risk in emerging markets, as their currencies continue to weaken.

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