Emerging Markets Rattled on Threats to Trade, Ukraine Deal
- EM stocks declined most since August led by Asia shares
- Some European currencies weakened, dragging down EMFX index
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Emerging markets were swept up in the global equities storm Friday, with a stock index seeing its biggest drop since August as investor concerns over US President Donald Trump’s trade threats and the fading prospect of a Ukraine ceasefire put pressure on risk assets.
A gauge tracking developing-nation stocks plunged 2.4%, with Asian stocks taking the heaviest beating amid rising tensions between the world’s two largest economies after China warned it would hit back against Trump’s latest trade threats. A similar index for emerging currencies fell 0.3% as currencies from Hungary and Poland weakened after Trump’s Friday meeting with Volodymyr Zelenskiy quickly devolved into a testy exchange.