Emerging Markets Assets Fall as US Treasury Rout Intensifies
- Signs of stabilizing China economy keep investor hopes alive
- Data-packed week will give clues on interest-rate outlook
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Emerging markets began the fourth quarter on a cautious note as China sent conflicting signals on its manufacturing revival and investors awaited a data-packed week for clues on the outlook for growth and inflation.
MSCI Inc.’s benchmark for developing-nation stocks and its counterpart index for currencies fell as treasury yields once again hit highs for the last 16 years. Fed Reserve Governor Michelle Bowman again said that multiple interest-rate hikes may be required to fully tame inflation. Sovereign-risk premiums widened amid higher US yields as the focus remained firmly on the higher-for-longer narrative for global interest rates.