Evergrande Woes Taunt Emerging Markets on Edge About the Fed
- Fidelity, Nordea see currencies in developing world weakening
- Potential default adds to concerns over wind-down of stimulus
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The chorus of emerging-market bears is getting louder as China Evergrande Group’s debt crisis turns a week already fraught with risks into a minefield.
Fidelity International and Nordea Investment expect developing-nation currencies to weaken further as the real estate giant’s financial saga exposes cracks in China’s growth engine. Citigroup Inc. now favors long dollar wagers in Poland, Hungary, South Africa and Turkey, while Morgan Stanley said it’s sticking with a bearish view on dollar debt amid the tumult.