Emerging-Market Currencies, Stocks Slump Amid Political Turmoil

  • Lira, won decline the most among world’s major currencies
  • Saudi Arabia leads equities lower as crude oil tumbles
Lock
This article is for subscribers only.

Emerging-market currencies and stocks retreated as heightened political risk in Turkey and South Korea soured investor appetite for assets in developing nations amid a rout in crude oil.

Tension between North and South Korea and debates on constitutional changes in Turkey sent a developing-currency index lower. The lira sank to a record low as traders tested policy makers’ resolve to defend it amid mounting bets on an interest-rate increase. Meanwhile, emerging-market equities had the biggest slump since Dec. 22 as energy shares slid with crude.