Emerging Markets Hit Hard by Warsh's Hawkish Rate Comments

Emerging-market stocks and currencies declined sharply after Federal Reserve Chair Kevin Warsh's hawkish comments on US interest rates.

The MSCI Inc.'s gauge of developing-market equities dropped as much as 1.4%, the most since August 24, with South Korean and Taiwanese indexes leading losses across the region.

An index for emerging market currencies slipped 0.1%, marking its first decline in nine sessions, with the Indonesian rupiah underperforming peers.