EM stocks set for worst week in over two months as yields, dollar weigh
SPY•Emerging-market stocks were heading for their biggest weekly loss in more than two months as rising U.S. Treasury yields and a stronger dollar weighed on sentiment. MSCI’s emerging-market stock index slipped 0.1%, while its currency index rose 0.17%.
1. Stocks pressured by yields
Emerging-market stocks were on track for their steepest weekly decline in over two months as Treasury yields climbed and the dollar hovered near a one-year high. The MSCI emerging-market stock index slipped 0.1% on Friday, while its currency index rose 0.17%.
2. Country markets diverge
Indonesia’s benchmark index was down 3.3% for the week, despite rising 0.5% on the day, after a new exchange rule allowed previously floor-bound stocks to trade lower. South Africa’s benchmark gained 1%, while emerging European equities rose 0.1% but were on track for their worst week since late April.
3. Turkey and Romania watched
JPMorgan analysts said Turkey’s market-disrupting fund crisis brings “meaningful downside risks” to its 3% economic growth forecast for 2026. S&P Global was due to review Romania’s sovereign credit rating amid a protracted political crisis.
