Emerging Markets Suffer Sharp Geopolitical Selloff

Emerging market assets plunged this week after Reuters reported that the United States and Israel launched bombardments on Iran, prompting global risk-off flows that pushed currencies, equities and bonds toward their largest weekly declines in nearly three years. Banks including JPMorgan and Citi cut emerging-market exposure, the MSCI EM index lost over $1 trillion in market value, and South Korea’s KOSPI briefly fell nearly 20% before rebounding about 10%, underscoring elevated volatility and potential resilience if fundamentals hold.