Emerging-market stocks and currencies edged lower on Wednesday, halting their weekly advance, after a flare-up of attacks in the Strait of Hormuz pushed oil prices, US yields and the dollar higher. The MSCI Inc. index of developing-world currencies is down by almost 0.1%, with Central and Eastern European countries leading the decline. The Colombian peso was the main outlier, outperforming as the oil-exporting nation benefits from the jump in energy prices, while its Latin American peers slide.
Investors are now watching inflation data in the region, beginning with Colombia late on Wednesday, followed by Chile, Mexico and Brazil, which could offer additional clues on local monetary policy direction. The latest flare-up in geopolitical tensions comes from Iran, which ratcheted up the pace of attacks on tankers in the Strait of Hormuz, sending Brent crude prices above $100 per barrel. The MSCI gauge for EM stocks fell for only the second day in five, declining 1%, with South Korea’s Kospi Index slipping 2%, its worst day so far this month.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing