Eastern Europe and South Africa led a selloff in developing-nation assets following Britain’s vote to leave the European Union as investors speculated that their economies will be the worst affected by the fallout from Thursday’s referendum.
Historical 100-day volatility in a gauge of currencies surged to the highest since March 2012. Poland’s zloty tumbled to the lowest closing level against the euro since January. The rand ended a five-day gain. Benchmark stock indexes in Warsaw, Prague and Istanbul all retreated at least 3 percent. The premium investors demand to hold emerging-market sovereign debt rather than U.S. Treasuries increased the most since June 2013. The cost of hedging against a default by Hungary jumped to a 17-month high.