(Updated at 0911 GMT)

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Unwinding carry trade weighs on dollar, boosts yen

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Indian rupee, Mexican peso tumble against the dollar

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Circuit breakers triggered for multiple bourses

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Turkish annual inflation falls to 61.78% in July

By Lisa Pauline Mattackal

Aug 5 (Reuters) - Emerging market equities around the

world tumbled on Monday, as fears of a recession in the United

States sparked a global selloff and sent investors running for

safer assets like the Japanese yen.

MSCI's index of global emerging market stocks lost

4.1%, as a free fall in Japanese stocks spilled over across

Asia, while worries about technology sector earnings weighed on

bourses in Taiwan and South Korea.

The risk-off mood continued from Friday, when a

weaker-than-expected U.S. jobs data triggered worries of

recession in the world's largest economy.

This compounded concerns for emerging markets over worries

in China, a spate of poor tech sector earnings, and geopolitical

tensions in the Middle East.

Traders are now pricing in a 50 basis points interest rate

cut by the Federal Reserve's September meeting, compared to a

more typical 25 bps cut expected last week.

"The overnight moves in Asia caused some panic selling, and

in August we're in really thin liquidity, nobody really knows

which pebble caused the avalanche," said Patrick Reid,

co-founder of FX consultancy The Adamis Principle.

South Korean stocks notched their worst session since the

global financial crisis of 2008, triggering circuit breakers for

the first time since March 2020. The selloff continued on

emerging market bourses in Europe and the Middle East.

Trading on Turkey's BIST-100 index was halted twice

on Monday after heavy premarket losses. The index was last down

3.8% with an index of bank stocks slipping 4.2% as the

lira dropped to record low against the dollar.

Meanwhile, the yen leapt to a seven-month high

against the dollar while crowded carry trades unwound,

pressuring high-yielding emerging market currencies.

A rebound in the yen, the most favored funding currency for

carry trades, weighed on the U.S. dollar and lifted

emerging market funding currencies like China's yuan.

"You had it really good while it lasted, but now we're

getting clusters of risk-off unwinds in carry (trades), I see

that to continue at least into Q4," Reid said.

Malaysia's ringgit also continued its strong run,

touching its highest to the dollar since April 2023.

A 0.5% loss in the dollar helped lift MSCI's emerging

market currency index 0.3%, with European

emerging market currencies also regaining ground

against the greenback.

On the other hand, high-yielding EM currencies lost ground,

with the Indian rupee becoming the worst-performing

Asian currency this year, while the Mexican peso touched

its lowest since October 2022.

On the data front, Turkish annual inflation fell to 61.78%

in July, just below expectations, while Czech retail sales rose

4.4%.

HIGHLIGHTS:

** Purchasing Managers' Index data from a number of

countries including Kenya, South Africa and Russia.

** Bangladesh PM Hasina taken to 'safe shelter', minister

says situation volatile

** EXCLUSIVE-China asks large state financial institutions

to drop auditor PwC, say sources

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see