BENGALURU: Most Asian currencies drifted in a narrow range on Tuesday, as data from the world’s largest economy pointed towards a growth slowdown, while Indian markets tumbled after a sharp rally in the previous session.

Elections in emerging markets across the world have taken centre stage this week, with Mexico’s Claudia Sheinbaum becoming the country’s first woman president, and the African National Congress suffering its worst election in 30 years in South Africa.

In Mexico, the peso closed at its lowest since last November, while stocks slumped more than 6%, as markets feared that the new government might bring constitutional changes and diminish checks and balances.

Indian stocks, meanwhile, tanked more than 8% in their worst day since March 2020, as vote-counting trends showed Prime Minister Narendra Modi’s Bharatiya Janata Party-led alliance falling short of a predicted landslide victory.

Equities in Mumbai had scaled record highs in the previous session after exit polls projected a big win for Modi.

The Indian rupee slipped as much as 0.5% to 83.518 per dollar and was poised for its worst day since late July 2023. The 10-year benchmark bond yield rose 12 basis points to 7.0553% earlier in the day, witnessing its biggest single-day spike in eight months. It was last up 10 bps.

Elsewhere in Asia, the Thai baht was among the top gainers with a 0.7% rise, as data showing signs of a softer US economy boosted the possibility of an early Fed rate cut.

Moreover, Thailand’s cabinet approved tax measures to boost domestic tourism during the low season.

Markets now await the monthly US payroll figures due on Friday, which could give more clarity on where interest rates are headed.

The Malaysian ringgit rose about 0.2%, while the Philippine peso , the Taiwan dollar and the Indonesian rupiah traded flat.