(Updates prices at 1530 GMT)

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MSCI EM stocks down over 4% amid global selloff

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Peso, rand, and other high-yielding currencies slump

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Prices of emerging markets bonds slip

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Bradesco jumps after results

By Lisa Pauline Mattackal

Aug 5 (Reuters) - Indexes tracking emerging market

assets tumbled to multi-month lows on Monday, while high

yielding currencies slumped against the dollar as U.S. recession

worries sent investors piling into safe-haven assets, such as

the Japanese yen.

The yen leapt to a seven-month high against the

dollar as crowded carry trades unwound, pressuring emerging

market currencies that have benefited from the strategy where

investors borrow in currencies of countries with lower rates and

invest in assets offering higher returns.

Mexico's peso lost 1.1% against the U.S. currency,

breaching the 20 pesos per dollar barrier and touching its

lowest since 2022.

"The likes of MXN/JPY were the darlings of the carry trade

for at least two years, and those days are over," said Patrick

Reid, co-founder of FX consultancy The Adamis Principle.

On the equity front, MSCI's index of global emerging market

stocks plunged 4.2% to its lowest since April, as a

stock rout that began in early Asia trade made its way through

regional bourses.

An index of Latin American equities tumbled

1.7% to its lowest since 2023. Stock markets in Argentina,

Colombia, Chile and Brazil

dropped between 1% and 2.7%.

The risk-off mood continued from Friday, when

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

recession in the world's largest economy. This compounded

concerns for emerging markets over worries in China, poor tech

sector earnings, and escalating geopolitical tensions in the

Middle East.

"The drivers of today remain the same as Friday - worries

about the escalation risks in Middle East, fears of a global

recession from policy mistakes linked to Bank of Japan hikes,

(the Fed) being behind (the) curve for jobs," Bob Savage, head

of market strategy and insights at BNY Mellon wrote in a note.

South Africa's rand and the Egyptian pound

slumped more than 1% against the dollar, while the Colombian

peso dropped nearly 1% to its lowest since October.

Brazil's real fell to its lowest since 2021, while an

index of Latin American currencies dropped to

its lowest since June 2023.

Emerging market bonds also lost ground as U.S. Treasury

yields slipped, with longer-dated bonds in Argentina

, Nigeria and Egypt

down over 2 cents on the dollar.

Traders are now pricing in a 50-basis-point interest rate

cut at the Federal Reserve's September meeting, compared to a 25

bps broadly expected last week as per CME's FedWatch.

Turkey's BIST-100 index was set for its worst day

since October after trading was halted twice following heavy

losses, with the lira hitting a record low against

the dollar.

On a more upbeat note, shares of Brazil's Bradesco

jumped 5.6%, bucking broader declines on the Bovespa

index after the financial services company reported better than

expected net income.

HIGHLIGHTS

** Brazil's Petrobras confirms gas discovery in Colombia

** PREVIEW- South African banks' earnings in spotlight ahead

of first rate cuts

** Protests in Nigeria over the soaring cost of living ebb

after deadly crackdown

** Indian rupee is worst Asian currency in U-turn as yuan

carry trades unwind

Key Latin American stock indexes and currencies

Latest Daily %

change

MSCI Emerging Markets 1016.67 -4.2

MSCI LatAm 2086.25 -1.84

Brazil Bovespa 124497.42 -1.08

Mexico IPC 51984.60 -0.49

Chile IPSA 6167.91 -2.34

Argentina MerVal 1401643.68 -2.212

Colombia COLCAP 1281.65 -2.67

Currencies Latest Daily %

change

Brazil real 5.7499 -0.70

Mexico peso 19.4108 -1.28

Chile peso 953.7 -0.37

Colombia peso 4176.32 -1.10

Peru sol 3.747 -0.85

Argentina peso 935.0000 -0.16

(interbank)

Argentina peso 1390 0.36

(parallel)