EM Stocks Tumble Amid Mideast Uncertainty and Rate Fears

Emerging-market stocks are facing headwinds as investors grow increasingly cautious about rising Middle East tensions and the prospect of higher interest rates. The Eastern European units are leading losses, with the Polish zloty, Hungarian forint, and Czech koruna experiencing significant declines.

The emerging-market currency index slipped 0.1% after posting its first weekly loss since June, and for a third consecutive day. Rising oil prices and US inflation data have fueled bets on Federal Reserve rate hikes, driving investors toward safer assets and the dollar.