Emerging market assets experienced a downturn on Thursday as global investors responded to geopolitical events in Ukraine and Pakistan. This shift ended a five-day rally, reflecting investor caution amid conflicts and policy changes in key regions.
Emerging market stocks declined by 0.5%, while a currency index fell by 0.1%. Asia experienced the most significant losses, while Central and Eastern European stocks saw a decrease of 0.8%.
Tensions in South Asia impacted Pakistan's government bonds following India's suspension of the Indus Waters Treaty. Simultaneously, developments in Ukraine and Poland contributed to financial fluctuations. These geopolitical factors continue to drive market uncertainty.