Emerging Assets Decline as Fed Move in June Seen as Possibility
- Fed minutes stoke speculation that June increase is possible
- Developing-nation equities, currencies fall to March lows
Markets Play Catch Up on Fed Rate Hike Expectations
Emerging-market stocks and currencies fell to two-month lows as Federal Reserve minutes revived the possibility of an interest-rate increase as soon as next month, raising the specter of capital flows out of riskier assets.
Raw-material producers led Brazilian equities to a one-month low. Egyptian stocks sank as the disappearance of an EgyptAir plane into the Mediterranean was the latest blow to the country’s efforts to rebuild its economy. South African gold mining companies dropped, ending a four-day rally in the nation’s benchmark gauge. Stocks in the Middle East slid to a five-week low as oil prices retreated. The ruble fell the most among currencies. The premium investors demand to hold emerging-market sovereign bonds over U.S. Treasuries rose for the first time in four days.