Deals
Emerging-Market Stocks, Currencies Decline Amid Fed Hike Bets
- MSCI equity gauge erases gains after U.S. jobs report
- Mexico’s peso beats peers as Banxico intervenes in Asian hours
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Emerging-market currencies and stocks trimmed their weekly gains after data showing a stronger U.S. labor market bolstered the case for higher interest rates that could dim the appeal of assets in developing nations.
Traders pushed down the value of assets in emerging markets after the latest signs of strength in the American jobs market spurred a surge in Treasury yields and sent the dollar toward a 14-year high. Mohamed El-Erian said in a Bloomberg TV interview that the labor report will encourage the Federal Reserve to proceed with raising interest rates, though he cautioned that a strong U.S. currency could weigh on growth.