Emerging Markets Drop as Global Growth Concern Damps Risk Demand
- MSCI equity benchmark retreats the most in seven weeks
- Currencies weaken after Fed's Rosengren sounds hawkish note
A Bangladeshi money dealer displays clean bundles of Taka, the country's currency, in his shop, in Dhaka, 07August 2003. Many of the notes which are in circulation, except for the 500 takas, are soiled or torn, Bangladesh has currency notes in denominations of one, two, five, 10, 20, 50, 100 and 500 takas, with a taka being worth about 1.7 U.S. cents. AFP PHOTO/Shawkat KHAN (Photo credit should read SHAWKAT KHAN/AFP/Getty Images)
Photographer: Shawkat Khan/AFP via Getty ImagesEmerging markets retreated, with equities falling the most in seven weeks, as deepening concern that global growth is faltering reduced demand for riskier assets in developing nations.
Energy stocks slid for a third day as Brent crude closed for less than $38 a barrel in London after touching the lowest price since March 4. The rand led currencies lower as concern mounted that South Africa’s credit rating may be cut and lawmakers rejected a motion to impeach President Jacob Zuma. South Korea’s won and Turkey’s lira retreated after hawkish comments from a Federal Reserve official on Monday. The premium investors demand to own developing-nation bonds climbed to a one-week high.