Russia tested appetite for ruble bonds for the second time in eight weeks yesterday, only to scrap the auction after seeing how much it would pay to borrow as the crisis over neighboring Ukraine escalates.
Emerging-market stocks fell for a third day after a Chinese manufacturing gauge signaled contraction and concern grew that the crisis in Ukraine will escalate. The yuan touched the weakest level in 16 months.
The Micex Index dropped for a third day as Ukraine considered resuming operations to oust militants from eastern cities and the U.S. expressed concern Russia isn’t taking steps to de-escalate the crisis.
The lira dropped for a third day against the dollar after Economy Minister Nihat Zeybekci said inflation will fall to around 6 percent by the end of the year, spurring speculation the government will push for lower rates.
The Turkish lira’s post-election rally is over as investors shift their focus from Prime Minister Recep Tayyip Erdogan’s victory last month to companies needing to repay their foreign-currency debts, the top forecaster said.
Emerging-market stocks rebounded from a one-month low after data showing a slowdown in Chinese growth bolstered bets on more economic stimulus. Brazil’s Ibovespa led gains among major equity gauges in the Americas.