Emerging stock markets plunged 10% from their peak after the Middle East conflict pushed oil prices above $100.

Emerging stock markets plunged 10% from their peaks after the Middle East conflict pushed oil prices above $100, while several currencies weakened amid capital inflows into safe-haven assets.

March 9, 2569 at 09.19:XNUMX a.m. Bloomberg reported that Emerging market stock indices have fallen more than 10% from their recent highs. Following escalating tensions in the Middle East, oil prices surged, suppressing demand for risky assets, while most emerging market currencies weakened against the US dollar as investors shifted towards safer assets.

The MSCI Emerging Markets Index plunged as much as 4.2% on Monday, extending its correction from its late February peak. Meanwhile, South Korea's Kospi index, previously one of the world's best-performing markets this year, has fallen more than 18% from its recent high, as large-cap stocks such as Samsung Electronics, SK Hynix, and Hyundai Motor tumbled amid global stock market selling.

In the money markets, the MSCI Emerging Markets Index fell as much as 0.8%, with the South Korean won weakening the most. The Philippine peso and Indonesian rupiah also plummeted to record lows against the US dollar. Conversely, the dollar strength index rose after oil prices surpassed $100 per barrel, prompting investors to seek safer assets.

Bob Savage, Head of Macromarket Strategy at BNY. It was noted that, in the short term, the direction of financial markets is likely to be determined more by the situation in the Middle East than by domestic economic fundamentals, particularly through the impact of energy prices and investor confidence.

He warned that net energy importing countries such as Japan, South Korea, and India remain vulnerable to shocks from persistently high energy prices, which could impact their trade balances and economic stability in the longer term.

refer : bloomberg.com

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