Emerging stocks were set for a six-week low as Turkey’s shares tumbled amid protests against the government and concern grew that the global economy will falter.
Bloomberg News reports that South Africa’s rand rose from the weakest level in four years.
The Borsa Istanbul Stock Exchange National 100 Index posted the biggest slump in a decade as Turkiye Garanti Bankasi AS and Akbank TAS sank by at least 9.4 per cent, while Turkish bond yields surged the most ever.
Russia’s dollar-denominated index plunged as much as 20 per cent from this year’s high as OAO Mechel slid. Brazil’s Ibovespa rose from a six-week low as MMX Mineracao & Metalicos SA led Brazilian raw-material producers higher.
The MSCI Emerging Markets Index slid by 0.8 per cent to 1,000.90 at 1:40 p.m. in New York, headed for the lowest close since April 18. Clashes in Istanbul began May 31, with protesters calling for Prime Minister Recep Tayyip Erdogan to resign.
Manufacturing in the US unexpectedly contracted, while Federal Reserve Bank of San Francisco President John Williams said bond purchases may be reduced in the next three months.