Emerging market assets have fallen for the third consecutive day, influenced by the tense situation in the Middle East.

Due to the escalating tension in the Middle East and the weakening risk appetite, as well as the closure of the US and Brazilian markets due to public holidays, emerging market assets have fallen for the third consecutive trading day. Traders reacted to reports that US officials are preparing to launch attacks on Iran in the coming days. The MSCI Emerging Markets Currency Index fell by about 0.2%, with South Korea, the Philippines, Indonesia, and Thailand leading the decline. The Chilean peso reversed its earlier decline, leading among emerging market currencies. The Philippine peso lagged behind other currencies as the central bank lowered borrowing costs, with Governor Benjamin Diokno stating that they are willing to let the peso drop to a 10-week low. Emerging market stocks posted their largest single-day decline since April, with Taiwanese and Hong Kong stocks leading the decline.