Selling Returns to Emerging Markets as China Rally Fades
- Stocks trim gains, currencies drift lower as dollar rebounds
- Hungary’s forint higher as central bank cuts interest rate
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An equity rally led by China’s stimulus plans proved fleeting as emerging markets were being whipsawed on Tuesday by investor nervousness over the US economy and the dollar’s resurgence.
A benchmark subindex for stocks in Latin America erased its gains after a strong start, and so did its counterpart for the emerging Europe, Middle East Africa region. That offered a contrast to the Asian trading day, when optimism China will step up measures to support the economy and markets had sparked a tech-stock rally in Hong Kong, firmer iron ore prices in Singapore and a stronger South African rand.