Emerging Markets Gird for Tariff Announcement as Rout Hits Pause

Strong U.S. jobs data lifts dollar, pressures emerging markets
Turkish lira rallies on speculation rate hike may come soon

Mark Mobius, co-founder at Mobius Capital Partners, discusses opportunities he sees in emerging markets.(Source: Bloomberg)

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By Paul Wallace, Aline Oyamada, Abhishek Vishnoi, and Lilian Karunungan

September 7, 2018 at 1:16 AM UTC

Updated on

September 7, 2018 at 8:12 PM UTC

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President Donald Trump’s announcement that he’s ready to impose tariffs on an additional $267 billion of Chinese goods dampened a rebound in emerging-market assets led by the most beaten-down countries.

The Turkish lira, Argentine peso and South African rand helped lift the MSCI’s gauge of developing-nation currencies on Friday, while the MSCI Emerging Market Index rose for the first time in eight days after crossing the threshold of a 20 percent decline that marks a bear market on Thursday. The offshore Chinese yuan, Chinese ADRs and exchange-traded funds fell after Trump said the new tariffs could come on short notice.