Global Markets
Home›Global Markets›Trade & Tariffs›Emerging shares pause as Strait of Hormuz tensions lif…
Emerging shares pause as Strait of Hormuz tensions lift oil and the dollar
MSCI’s EM stock gauge slid 1.0% and the developing-currency index eased, while Brent rose above $101 a barrel amid attacks on tankers.
Emerging-market stocks lost momentum as fresh flare-ups in Middle East tensions strengthened the oil market and the dollar, LiveMint Markets reported, citing Bloomberg.
The MSCI index tracking emerging-market shares fell 1.0% for only the second time in five sessions, while South Korea’s Kospi dropped 2.0%, its worst day of the month so far. A separate gauge for developing-nation currencies also fell 0.1%, with countries that import oil, such as Hungary, seeing the biggest declines.
The escalation was linked to Iran, which stepped up attacks on tankers in the Strait of Hormuz, driving Brent crude to more than $101 per barrel. The story also noted that oil shipments through the waterway had been returning to near prewar levels before the new incidents.
In parallel, India’s rupee slid 0.3% against the dollar after the central bank raised interest rates for the first time in nearly four years, and traders were reportedly disappointed by what they viewed as limited follow-through on tightening liquidity. The article said Poland is expected to keep rates unchanged.
Latest closeWTI crude $89.70 ▼1.6%|Brent $100.73 ▼1.5%|Kospi 6,949.75 ▼0.8%