(Bloomberg) -- Emerging-market stocks halted their advance and an index gauging the asset class’s currency returns declined as a flare-up in Middle-East tensions boosted the oil price and the dollar.
The MSCI Inc. gauge for EM stocks fell for only the second day in five, declining 1%, with South Korea’s Kospi Index slipping 2%, its worst day so far this month. A concurrent index for developing-nation currencies fell 0.1%, with the units of oil-importers such as Hungary leading the retreat.
The latest flare-up in geopolitical tensions comes from Iran, which ratcheted up the pace of attacks on tankers in the Strait of Hormuz, sending Brent crude prices to more than $101 per barrel. The attacks come just as as oil shipments through one of the world’s most important energy waterways finally return to near prewar levels.
Elsewhere, India’s rupee slumped 0.3% against the dollar after the central bank raised interest rates for the first time in almost four years. The lack of more aggressive steps to tighten liquidity and support the currency left traders disappointed. Poland is expected to hold rates unchanged later on Wednesday, with the zloty tracking lower against the euro.
In credit markets, Cameroon raised the size of its 2033 eurobond via a $300 million tap arranged by Standard Chartered Plc. Meanwhile, Senegal laid out an ambitious timeline to restructure billions of dollars of debt during an initial meeting with creditors hosted by the International Monetary Fund.