Emerging-Market Assets Fall Amid Global Stock Sell-Off

(Bloomberg) -- Emerging-market assets extended declines over the past week amid a global rout in equities and as the dollar soared to the highest this year. An MSCI index of developing-nation stocks posted its fifth weekly decline, the longest losing streak since May 2016.

Highlights for the week ended Oct. 26:

Asia:

EMEA:

Latin America:

• Brazil’s real and Ibovespa stock gauge both advanced for a 4th week amid optimism right-wing candidate Bolsonaro will win Sunday’s election
• Mexican peso dropped a 4th straight week amid a nationwide referendum on whether to proceed with construction at Mexico City’s new airport
  • President-elect Andres Manuel Lopez Obrador said financial markets should not be worried about the future of airport and there are no fundamentals that explain the peso’s recent performance
  • MXN and stocks would both be hit if AMLO administration decides to cancel the airport project, according to Alonso Cervera, Credit Suisse managing director for emerging-market research, who said any cancellation would be "very bad news"
  • Annual inflation slowed more than expected in the first two weeks of October to 4.94%, as prices of agricultural goods fell from late September
• Colombia’s central bank kept policy rate on hold at 4.25% as peso weakened to a 2-year low amid falling oil prices
• Argentina’s peso and Merval stock index both retreated, ending a multi-week bullish run after the country secured additional IMF funding in late September

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