Emerging Markets Beat Like A Drum

Emerging market bonds had their biggest two-week decline since July 2002 on concern accelerating inflation will boost the pace of global interest-rate increases, reducing demand for riskier assets. The MSCI, Morgan Stanley Capital International Emerging Market Index of Stocks, an equity benchmark made up of 733 members, fell for nine consecutive days until yesterday, its longest streak of losses since September 2001.

The index tracks the stocks of companies in Eastern Europe, the Middle East, Asia and Latin America. The MSCI Emerging Markets Index has slid 6.9 percent since reaching its high for the first quarter on Feb. 28. It's headed for its first monthly decline in eight. Emerging-market equity funds for Europe, the Middle East and Africa had their biggest weekly outflow of money in at least three months, according to EmergingPortfolio.com, a Boston-based fund tracker.

Emerging Markets Getting Hammered Down

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