Emerging market stocks suffered their worst day in over three months on Monday and developing currencies slipped as a Covid warning from China added to fears over rising global inflation ahead of a US Federal Reserve meeting later in the week.
’s index for emerging market equities fell 3.1% by 1138 GMT while the emerging currency benchmark slipped 0.6% – both at their lowest level in around three weeks. The declines mirrored sharp declines in global markets more widely after data on Friday showed US inflation was running red-hot, fuelling worries about even more aggressive policy tightening in a big week for central banks.
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