Emerging Markets Falter as Investors Assess Potential Fed Impact
- Currencies, stocks decline as bets jump for higher U.S. rates
- Outlook for developing markets remains ‘solid’: BNP Paribas
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Emerging-market stocks fell, reducing their second weekly gain in October, and currencies declined as investors gauged whether further gains in developing-nation assets are justified as the U.S. moves closer to raising borrowing costs.
The MSCI Emerging Markets Index dropped for the first time in four days after better-than-expected U.S. economic data supported the case for a December increase in Federal Reserve interest rates. South Korea’s won and South Africa’s rand depreciated along with bonds in both countries as the greenback completed a third weekly advance against a basket of currencies. Stock trading was canceled in Hong Kong as Typhoon Haima lashed the financial center.