Trade-War Clamor Batters Emerging Stocks, Currencies: Inside EM

Emerging markets were left reeling as the world’s two biggest economies threatened punishing tariffs in the early shots of a trade war. Stocks slid to the lowest since October and currencies dropped a sixth day.

The MSCI Emerging Markets Index of equities sank below the 1,100 mark, which has historically limited losses, amid concern that a tit-for-tat tariff showdown between the U.S. and China will crimp global growth. All but five of the 24 emerging-market currencies tracked by Bloomberg retreated, while sovereign yield spreads blew out an average of 9 basis points versus Treasuries.