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Traders Whipsawed in Emerging Markets Awaiting Central Banks

  • Odds of September U.S. rate increase have narrowed to 20%
  • Economists divided on Bank of Japan’s stimulus plans
Updated on

Emerging-market investors were whipsawed as they waited for central banks in the U.S. and Japan to review policies that have supported demand for higher-yielding assets.

A measure of volatility in developing-nation currencies held near the highest level since late June, and MSCI’s emerging-market equity benchmark swung between a gain of 0.5 percent and a 0.3 percent decline Thursday. The odds of a Federal Reserve interest-rate increase at its next meeting narrowed to 20 percent, from 28 percent a week ago, futures trading data compiled by Bloomberg show.