Emerging markets hit by steepest weekly fall since March 2026
Emerging-market assets took a big hit this week, marking their steepest drop since early March 2026.
Currencies like the Chilean peso, Brazilian real, and Hungarian forint all lost at least 1.4%, while the main emerging-markets index fell nearly 3%.
The big reason? Investors are worried about rising global inflation, which has made people pull money out of these markets, especially after South Korean stocks plunged more than 6%.
Borrowing costs rise for emerging markets
Oil prices shot up past $109 a barrel thanks to tensions around Iran and a blocked Strait of Hormuz, with no breakthrough after Trump's China trip.
At the same time, global bond yields climbed sharply (US 10-year at 4.6%, Japan's 30-year at its highest in decades), as fresh US inflation data made a December Fed rate hike look more likely.
All this means it's getting pricier for emerging economies to borrow money—and investors are feeling nervous, making it a rough ride for these markets right now.