Emerging markets slide as Middle East shipping attacks keeps oil above $100

MSCI's index tracking emerging market equities `.MSCIEF` fell 0.6%. Asian heavyweights South Korea `.KOSPI` and Taiwan `.TWII` eased 0.3% and 0.5% respectively. A board member of the Bank of Korea said the central bank would assess external and internal policy conditions, including the impact of the previous two rate hikes, to determine the timing and pace of further tightening. Rising energy costs linked to the conflict have complicated the inflation outlook for central banks globally. With the U.S. CPI data due on Friday, traders will look for clues on whether the Federal Reserve tightens interest rates when it meets next week. Markets expect a 62.2% chance the Fed at its September meeting will hike rates by 25 basis-points, compared with 52.2% a month ago, according to CME's FedWatch Tool. In China, the blue-chip CSI300 index `.CSI300` lost 0.5%, while the benchmark Shanghai Composite index `.SSEC` erased 0.4%. However the currency `CNY=CFXS` firmed and held near more than three-year highs. The broader EM currency gauge `.MIEM00000CUS` was down 0.2%. Most emerging market assets fell on Thursday after attacks on shipping in the Middle East kept oil prices high, increasing concerns about inflation and sapping risk appetite ahead of potentially pivotal U.S. data later this week. Oil prices rose on Thursday, extending gains that took Brent `LCOc1` over the psychological threshold of $100 a barrel in the previous session. Traders braced for deeper supply disruptions after Iran and the United States launched their largest attacks yet on shipping. `O/R` Sustained higher oil prices could contribute to widening current account deficits across most oil-importing emerging market economies. "Asian shares saw heavy selling with the region particularly exposed to disrupted energy supplies from the Middle East," said Russ Mould, investment director at AJ Bell. In emerging Europe, macroeconomic developments were in focus. Czech consumer prices rose 1.9% on a yearly basis in August, statistics office data showed. The year-on-year inflation rate picked up from 1.7% in July. Central bank Vice Governor Eva Zamrazilova said in an interview that Czech economic development did not require a policy change this month but inflation risks continued and monetary policy needed to remain restrictive. The local equities index `.PX` edged higher 0.4%, while the koruna `EURCZK=` firmed against the euro. The National Bank of Poland kept its main interest rate at 3.75% on Wednesday, maintaining its cautious approach. Stocks in Warsaw added 0.3% but the zloty `EURPLN=` eased 0.1%. In Turkey, the stocks index `.XU100` dropped 0.3% ahead of the country's central bank interest rate decision later in the day, when it is expected to keep its benchmark rate at 37%, a Reuters poll showed. The lira `TRYTOM=D4` remained unchanged against the U.S. dollar.

Emerging markets slide as Middle East shipping attacks keeps oil above $100

Asian equities ease

Emerging markets fall as oil stays above $100

Central and eastern Europe focus on inflation and rates

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