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EMERGING MARKETS-EM stocks pressured by AI-heavy Asian bourses, Iran tensions linger
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EMERGING MARKETS-EM stocks pressured by AI-heavy Asian bourses, Iran tensions linger
Jul 16, 2026 2:29 AM

* MSCI EM stocks slip 1.2%, FX up 0.1%

* Chip stocks fall despite TSMC's Q2 profit jump

* Sources say Senegal expected to appoint Lazard as debt

advisor

By Utkarsh Hathi and Purvi Agarwal

July 16 (Reuters) - Emerging-market stocks were mixed on

Tuesday, with tech-heavy Asian equities dragged down by a

sell-off in chip stocks, while currencies were

flat-to-marginally higher against a steady dollar.

Chipmakers sold off yet again, overshadowing strong earnings

from Taiwan's TSMC - the world's largest contract

chipmaker and a major supplier to Nvidia ( NVDA ).

Taiwanese stocks were flat, South Korea's KOSPI

dropped more than 6%, led by declines in Samsung

and SK Hynix ( SKHY ), while Chinese stocks

fell 1.9%.

Asia's tech-heavy equity markets have seen sharp swings in

recent weeks as investors weigh concerns over the durability of

the AI-driven rally against robust earnings from semiconductor

stocks amid continued demand.

The broader MSCI global EM stocks index lost 1.2%,

while the currencies gauge edged 0.1% higher.

In emerging Europe, the Romanian benchmark rose

0.8%, Hungarian equities gained 0.5% and Polish blue-chip

stocks were up 0.3%.

Meanwhile, escalations in the Middle East continued to stoke

fears of a renewed full-scale conflict and prolonged energy

supply disruptions in the Strait of Hormuz.

Shipping data showed fewer vessels travelling through the

crucial waterway after the U.S. reimposed its blockade of Iran,

but crude prices eased as traders looked to book profits after

three sessions of gains.

"Our working theory has been that pre mid-terms, Trump is

worried about losing the Senate and hence is much more amenable

to a deal... but, any deal which involves a toll through the

Strait would be unacceptable to the West and create an unstable

equilibrium and could lead to further escalation post

mid-terms," said Mohit Kumar, an economist at Jefferies.

The dollar index was stable, though it hovered near a

one-month low, hit by fading expectations of imminent U.S. rate

hikes, following softer-than-expected inflation readings this

week.

However, the Bank of Korea raised its benchmark interest

rate for the first time in three-and-a-half years and flagged

more to come, as brisk growth fanned inflation risks.

Governor Shin Hyun Song said that demand-side inflationary

pressures in the economy could increase as the chip boom's

impact spills over into domestic demand.

South Africa's rand traded 0.2% lower in choppy

trading, while its stocks gained 0.4%. Turkey's lira

was marginally lower.

Most emerging European currencies lost ground against the

euro, with the Hungarian forint slipping 0.4%.

Poland's central bank is expected to release core inflation

data for June later in the day.

Elsewhere, Senegal is expected to appoint Lazard as its

financial advisor on debt matters, according to sources familiar

with the situation, as investors closely watch the country's

efforts to tackle its debt burden.

HIGHLIGHTS:

** HSBC upgrades Indian equities to 'neutral' on easing oil

prices, return of foreign flows

** China's record consumer defaults undermine Beijing's push to

boost spending

** Indonesia's FDI jumps in second quarter, investment minister

says

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see

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