BENGALURU- Most emerging Asian stock markets tumbled on Friday, with South Korea and Taiwan leading the decline, as US slowdown fears soured risk appetite globally.

Investor sentiment was spooked following a weak US manufacturing report, even as the Federal Reserve signaled this week a potential end to its restrictive policy at its September meeting.

The MSCI International All Asia Pacific Index including Japan, slumped more than 3.5 percent , its worst day in more than three years.

The tech-heavy bourses in Taipei and Seoul were among the worst hit with a slump of 4.4 percent and 3.7 percent , and also marked their third and fourth weekly losses, respectively.

“Sentiment has been worsening despite the Fed’s looming rate cut. Investors were more sensitive to the recession risk and started to take profit from the US rally,” said Ken Cheung Kin Tai, chief Asian FX strategist, Mizuho Bank.

Tokyo’s Nikkei took a significant beating, ending nearly 6 percent lower amid a stronger yen, while shares in Bangkok Singapore Manila and Kuala Lumpur slumped in a range of 0.8 percent to 2 percent .

The Malaysian ringgit was one of the outliers. The ringgit advanced 1.5 percent to a one-year high and traded at 4.500 per dollar, while the Thai baht edged 0.5 percent higher.

The ringgit is the only positively performing emerging Asian currency with a 1.8 percent gain on a year-to-date basis.

“We do sense there is more positive idiosyncratic optimism towards the ringgit amid the government reforms, better-than-expected growth and more foreign investor interest,” analysts from Maybank wrote in a client note.

Among other Asian currencies, the Taiwanese dollar slipped 0.3 percent , while the Indian rupee Indonesian rupiah and the Singapore dollar traded between flat and 0.2 percent higher.

South Korea’s won recouped most of early losses to close marginally lower. The country’s inflation ticked higher for July, slightly beyond market expectations due to supply-side pressure, casting doubt on whether the central bank will be in a position to cut interest rates in the near term.