A Quick Look At The Emerging Market Inflation That's Panicking Investors Worldwide

Dhaka Stock Exchange Riot

Photo: AP

2011 has only just begun, yet there’s already a key trend investors need to be aware of.Some of the emerging markets most lauded for their gains in 2011 are now dipping, some even tanking, as a result of inflation and rate hike fears.

This isn’t exclusive to Asia either. The slowdown has hit Latin American and South American shares too.

Down 0.49%: China's Shanghai Composite slipping on fears regime may tighten further

Biggest companies: Petrochina, ICBC, China Construction Bank, Bank of China and Agricultural Bank of China.

Change year-to-date: -0.49%

The Shanghai Composite has been moving lower because of concerns the Chinese government is going to implement more tightening measures to control inflation.

Down 2.27%: Argentina's MERV tumbles on rapid inflation creating lines outside banks for notes.

Biggest companies: Pampa Holdings, Telecom Argentina, Molinos, Petrobras Participaciones and Tenaris.

Change year-to-date: -2.27%

Argentinian inflation is out of control, rising 25% year-over-year. There are lines outside of ATMs because banks are running out of currency. The government has thus far been unwilling to offer a note bigger than 100 pesos.

Down 2.58%: Indonesia's Jakarta Stock Exchange tanks as country's central bank prepares to raise rates.

Biggest companies: Telekom Indonesia, Bank Central Asia, Bank Negara Indonesia, Semen Gresik and Bank Raykat Indonesia

Change year-to-date: -2.58%

Stocks began to tumble in anticipation of a 1% benchmark interest rate hike by Indonesia's central bank according to Bloomberg. The goal of this rate increase is to stem the country's 6.96% year-on-year inflation rate.

Down 4.23%: India's BSE diving over concerns inflation is out of control and the central bank is going to raise rates way higher.

Biggest companies: Reliance Industries, ONGC, Tata Consultancy Services, Infosys Technologies and State Bank of India

Change year-to-date: -4.23%

India is experiencing extremely high inflation, with food prices rising 18.32%. The government is attempting to contain inflation ahead through increases in interest rates, and markets are selling off fearing lower returns.

Down 12.8%: Bangladesh's Dhaka Stock Exchange closed today after it crashed more than 9% in one hour.

Biggest companies: NBL, United Air, UCBL, BEXIMCO

Change year-to-date: -12.8%

Bangladesh's Dhaka Stock Exchange sold off more than 9% in one-hour today, leading to protests outside the exchange.

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