Emerging-Market Assets Slip After Trump’s Ultimatum to Iran

rw12we382id545xpuv9atyz9_media_dl_1.png MSCI, BloombergArticle content(Bloomberg) — Emerging-market assets declined as President Donald Trump’s ultimatum to Iran raised the risk of further disruptions to Middle East energy supplies.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe MSCI Emerging Markets Index fell 2.5% in early trading Monday, dragged down by a selloff in South Korean chipmakers. A gauge tracking developing-nation currencies dropped 0.3%, with the Philippine peso heading for a fresh record low.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentRisk assets remain under pressure as the Iran war enters its fourth week with little sign of easing. Trump gave Tehran 48 hours to reopen the Strait of Hormuz or face strikes on its power plants, with the deadline expiring Monday evening in New York. Iran warned it would shut the waterway indefinitely and target US and Israeli energy infrastructure if attacked. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!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.Article contentSeparately, Israeli forces said they had begun wide-scale strikes on Tehran infrastructure.Article content“Our view is it is time for caution, not panic,” Martin Schulz, head of international equities at Federated Hermes, said on Bloomberg TV. “Duration is the main issue. The longer this drags out, obviously the worse it gets.”Article contentOil traded at around $112 a barrel, stoking worries that high energy prices and strained supply lines will hurt global growth. The MSCI EM stocks index is on track for a more than 11% drop this month — its worst since September 2022 — while the gauge of currencies has fallen 2.6%, also set for the biggest decline since then.Article contentSouth Korean stocks led declines in Asia, with the benchmark Kospi tumbling as much as 6.4%. A slump in futures briefly triggered a halt in program trading by the exchange.

Samsung Electronics Co. and SK Hynix Inc. were among the hardest hit as AI optimism faded amid concerns about higher interest rates.Article contentArticle contentThe Korean won slid to its weakest level against the dollar since 2009 despite the nomination of Shin Hyun Song — a senior Bank for International Settlements official seen as a hawk — as the next central bank governor. The Chinese yuan dipped after the central bank weakened its fixing by the most since November 2024, while the Philippine peso traded below 60 per dollar, adding pressure on authorities to stem losses.Article content“Extreme market volatility and geopolitical uncertainty remain the primary drivers of Asia-Pacific risk,” Wee Khoon Chong, a senior strategist at BNY wrote in a note. “Central banks and governments are expected to shift further into defensive mode: intensifying FX intervention to smooth volatility and deploying macroprudential measures to cushion living costs.” Article content—With assistance from Abhishek Vishnoi.Article contentTrending Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Oil prices could get high enough to force a COVID-level lockdown Commodities Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate Canadian housing bears now have nine reasons backing them up Mortgages TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation 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. Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Oil prices could get high enough to force a COVID-level lockdown Commodities Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate Canadian housing bears now have nine reasons backing them up Mortgages TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas