Indonesia’s stock market had suffered its worst day in over five years as its currency pains worsened while Chinese equities fell almost 2 percent in Shanghai. .SSThe rand then slumped to a more than 2-year low in a fresh 1.5 percent drop as traders also dumped its bonds and the most globally traded EM currency, the Mexican peso, too. There was no evidence of wide-spread contagion yet he added, though what global stock markets do next could be crucial. Foreign money inflows to emerging markets shrank to just $2.2 billion in August from almost $14 billion in July, they showed, with net outflows from emerging debt of almost $5 billion during the month. South Africa had said Tuesday its economy returned to recession in the second-quarter of this year with the second straight quarter of contraction, even before the worst of the emerging currency shock hit over the summer.

Source: The North Africa Journal September 05, 2018 10:59 UTC