Economics
No Reprieve for Emerging Markets With Rout in Virus-Hit China
- Volatility in emerging-market stocks and currencies jumps
- China markets resume trading; stocks slide as bonds jump
Photographer: Johannes Eisele/AFP via Getty Images
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Fresh from their worst month since August, emerging-market stocks and currencies are headed for more tumult as investors weigh the economic shocks from the coronavirus outbreak.
China’s yuan and stocks plunged on Monday, while bonds gained as onshore financial markets reopened for the first time since Jan. 23 after the extended Lunar New Year holidays. The nation’s central bank sought to soften the selloff through injections of liquidity into the money market and cutting borrowing rates.