No reprieve for emerging markets with rout in virus-hit China

Street view after Wuhan government announced to ban non-essential vehicles in downtown area to contain coronavirus outbreak, on the second day of the Chinese Lunar New Year, in Wuhan, Hubei province, China January 26, 2020. — Reuters

FRESH from their worst month since August, emerging-market stocks and currencies are headed for more tumult as investors weigh the economic shocks from the coronavirus outbreak.

China’s yuan and stocks plunged on Monday, while bonds gained as onshore financial markets reopened for the first time since Jan. 23 after the extended Lunar New Year holidays. The nation’s central bank sought to soften the selloff through injections of liquidity into the money market and cutting borrowing rates.