The Shanghai Composite dropped 0.2 percent from its highest level since January 2010 at 9:57 a.m. local time today.

Currency volatility has played havoc with foreign investor returns. While China’s yuan and India’s rupee have weakened less than 3 percent against the dollar this year, the Brazilian real has lost about 13 percent and the ruble has plunged more than 40 percent.

The combined market capitalization of Chinese and Indian stocks rose to a record $6.4 trillion this month, while Brazil and Russia together slumped to $1.2 trillion, the lowest since at least 2005, according to data compiled by Bloomberg.

Divided Outlook

The outlook for China and India remains favorable relative to the two other BRICs, said Adam Tejpaul, the Hong Kong-based head of Asia investments at JPMorgan Chase & Co.’s private bank unit, which oversees $1.1 trillion. While there may be bargains among Russian and Brazilian shares after the recent losses, the countries’ “weak” economic outlook is a deterrent for investors, he said.

Russia’s Micex trades at about 5 times projected 12-month earnings, compared with a ratio of 11 for the Ibovespa, 12 for the Shanghai Composite and 15 for India’s Sensex.

“We are most excited about new governments established in China and India, who have put reforms in place that will benefit the economy and financial markets in 2015,” said Pearlyn Wong, a Singapore-based investment analyst at Bank Julius Baer & Co. “They are also net beneficiaries of weaker oil and commodity prices.”

Chinese President Xi Jinping, who pledged to give markets a “decisive” role in the $9 trillion economy after coming to power last year, has allowed private investors to take stakes in state-owned firms and started a stock trading link with Hong Kong. Modi, his Indian counterpart, has cut fuel subsidies, allowed more foreign investment in businesses such as defense and promised to narrow the budget deficit.

Commodities Plunge

In Brazil, the corruption scandal at Petrobras, where hundreds of millions of dollars from contracts at the company went to executives, contractors and political parties, according to prosecutors and witnesses, threatens to undermine the political clout of President Dilma Rousseff, who was re-elected in October. Putin, who came to power in 2000, is struggling to prevent the depreciation of the ruble from turning into a banking crisis following the central bank’s decision to raise interest rates to 17 percent this month.