(Reuters) - Most emerging equity markets are hovering near bear territory after sharp declines since hitting highs in January, and appear set for fresh lows as the simmering U.S.-Sino trade war and rising U.S. yields undermine them.
Twenty out of 23 emerging market stock indexes are trading below their 200-day moving average, a technical analysis showed, suggesting further downside risks to these markets.
China has the worst ratio, with 88 percent of its companies trading below the 200-day moving average, followed by the Philippines and Poland.
Analysts consider the percentage of stocks trading above or below 200-day moving average as an indicator of strength or weakness of the underlying market.
Another signal that analysts look to confirm a bear market is whether stocks have declined 20 percent from their year-highs.
MSCI’s widely tracked emerging market index .MSCIEF has fallen 18 percent from its January high, based on Monday’s close.
Reporting By Patturaja Murugaboopathy; Editing by Vidya Ranganathan and Kim Coghill