EM assets weaken as Iran impasse lifts oil and curbs risk appetite
EEM•Emerging-market stocks fell 1.1% to a one-week low on Monday as a stalemate in US-Iran talks pushed oil higher and curbed risk appetite. Currencies were mixed, while Turkish equities dropped 2.6% and the Hungarian forint fell 1.2%.
1. Stocks fall, oil rises
Emerging-market stocks fell to a one-week low on Monday as the stalemate in US-Iran talks pushed oil prices higher and curbed risk appetite. Brent crude rose 1.3% after US President Donald Trump rejected Iran's offer to resolve the conflict and reopen the Strait of Hormuz, raising concerns about prolonged energy supply disruption.
2. Regional markets mixed
Turkey's BIST 100 fell 2.6%, extending losses after a probe into alleged market manipulation linked to investment funds rattled investors. Hungary's benchmark index rose 0.5%, while the forint dropped 1.2% to a one-month low. South African stocks fell 1.9% to a more than two-month low, and the rand slipped 1%.
3. Data in focus
Investors await US PCE inflation figures and August payrolls data, both due later in the week, as well as a busy economic data calendar across developing economies. MSCI's emerging-market currency index was little changed and headed for its best quarter since June last year.
