The data from China to Hungary reveals a worse economic decline than predicted due to disinflation.

Emerging markets sold precipitously, with the MSCI Emerging Market Index falling to its lowest closing in nearly four weeks.

South Africa’s rand led currency-index losses, and falling US Treasury yields raised sovereign risk premiums.

The bullish case for developing markets relied on a China-led GDP recovery, which has been uneven at best and non-existent at worst.

Exports fell almost 15% in July, the fastest drop in a year, reflecting a worldwide demand downturn.

Imports fell nearly double the rate economists predicted, indicating poor domestic consumer demand.

A report on Wednesday will indicate the country’s deflation.

The dollar could be pivotal for the dollar posting solid gains and breaching key technical pivots.

Hungary’s inflation fell below 20% for the first time in 11 months, and the forint fell against the dollar with other emerging-market currencies.

The macro picture shifted from inflation to the delayed impact of hawkish measures.