Emerging Assets Slide as US Hormuz Blockade Saps Risk Sentiment

Emerging assets declined as escalating tensions in the Middle East following a breakdown in peace negotiations sapped risk sentiment.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Emerging assets declined as escalating tensions in the Middle East following a breakdown in peace negotiations sapped risk sentiment. Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The MSCI Emerging Markets Index fell as much as 1.2% in Asian trading, weighed by tech shares including Samsung Electronics Co. and Tencent Holdings Ltd. Currencies in the region mostly weakened against the dollar, with the Indian rupee and South African rand dropping more than 0.7% each. The Hungarian forint outperformed after a landslide win by the pro-European opposition party. A surge in oil prices back above $100 a barrel after US President Donald Trump ordered a blockade of the Strait of Hormuz is raising inflationary concerns for countries reliant on crude imports, particularly in Asia. The escalation halted a rebound in emerging assets after last week’s ceasefire lifted hopes that the war was nearing an end. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.“The weakness is not completely done, it will be a slow bleed for a lot of the energy importers,” said Abbas Keshvani, a macro strategist at Royal Bank of Canada in Singapore. “Every day that energy prices remain high, importers in places like India and Korea are having to bid for more dollars than they normally do — this represents a gradual, regular bid for dollars.” Hungary’s currency gained around 2% against the euro after Prime Minister Viktor Orban was ousted in a landslide victory by Peter Magyar’s Tisza party. The result vindicates bets by investors who had been positioning for the historic win, which may help unlock access to billions of euros in European Union funding.The “market was already pricing some chances of Tisza victory but with supermajority there is decent room for Hungarian assets to outperform,” Morgan Stanley economists and strategists including Georgi Deyanov wrote in a note to clients. “Even though external backdrop is not supportive, these results would be quite positive to reduce the risk premium in the currency and the rates curve.” Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.