Lates News

With the continuous escalation of tensions in the Middle East, oil prices have risen sharply and risk appetite has suffered a severe setback. The MSCI Emerging Markets Stock Index fell 4.2% on Monday, dropping more than 10% from its peak in February. Safe-haven sentiment triggered selling in heavyweight stocks like Samsung Electronics, SK Hynix, and Hyundai Motor, dragging down the South Korean KOSPI index by over 18% from its recent high. At the same time, safe-haven demand pushed the US dollar higher, causing most emerging market currencies to weaken against the dollar due to the spreading safe-haven sentiment. The MSCI Emerging Markets Currency Index fell 0.8%, with the South Korean won leading the decline and the Philippine peso and Indonesian rupiah reaching historic lows against the dollar. Bob Savage, a strategist at The Bank of New York Mellon, said, "In the short term, market trends are more influenced by the situation in the Middle East rather than domestic fundamentals. Energy net-importing countries like Japan, South Korea, and India are still vulnerable to trade shocks.".