Emerging-Market Stocks Drop as Fed Outlook Outweighs Oil Rally
- Investors look ahead to U.S. payrolls data due Friday
- Brazil’s stocks, real slide amid concern over political risk
A Deep Dive Into Emerging Markets
Emerging-market equities fell for the second time in three days as concern that higher U.S. interest rates will diminish demand for riskier assets in developing nations outweighed a rally in energy stocks after OPEC ministers agreed to cut production.
The MSCI Emerging Markets Index declined 0.5 percent to 858.41. Consumer-staples stocks led declines as eight of the benchmark’s 11 industry groups retreated. Brazilian stocks fell the most in the world and the real weakened amid speculation that economic reforms may be derailed by fresh turmoil. Shares in the Gulf and Russia, the world’s top energy exporter, advanced as Brent crude sold for the highest price since August 2015. The Shanghai Composite Index rose after China’s official factory gauge reached the highest since July 2014.