Emerging Assets Tumble as U.S. Jobs Data Back December Liftoff
- Currencies extend slump as stocks pare weekly advance
- South Africa's rand slumps to record after payrolls report
Emerging-market currencies sank to a one-month low and commodity producers led stocks lower as better-than-forecast U.S. employment growth supported the case for the Federal Reserve to increase the near-zero interest rates that have propped up demand for riskier assets in developing nations.
Futures traders see the odds of a Fed move in December at 68 percent, up from 56 percent on Thursday, after the payrolls report was released. At least 10 exchange rates from Turkey’s lira to the Russian ruble tumbled a minimum of 1 percent versus the dollar. South Africa’s rand slumped to a record. Taiwan’s benchmark equity gauge dropped from the cusp of a bull market after Acer Inc. reported a quarterly loss. Brazilian stocks plunged as disappointing corporate earnings underscored the deepening recession in Latin America’s biggest economy.