Emerging-Market Assets Drop as Turkey Highlights Political Risk
- Stocks in Istanbul fall most in world after Moody’s downgrade
- Philippine peso declines to seven-year low on Duterte concerns
Lira Falls After Turkey Credit Downgrade
Emerging-market assets fell for a second day, led by a plunge in Turkish stocks after Moody’s Investors Service cut the country’s credit rating to junk, underscoring political risks in developing nations.
Turkish equities fell the most in the world and yields on the nation’s 10-year bonds surged as the Moody’s downgrade came after the ratings company concluded a review initiated after an unsuccessful coup attempt in July. The Philippine peso weakened to a seven-year low amid concern about President Rodrigo Duterte’s policies. Saudi Arabian stocks rose the most in three weeks as oil prices recovered amid signs the kingdom will offer production cuts when OPEC members and Russia meet Wednesday in Algiers.