Political turmoil and rising dollar have forced emerging market equities down for the second day in a row while the rand led currency losses with a fall of almost 1 percent.
The developing-country MSCI benchmark eased 0.2 percent. Asia’s stock exchange has hit a soft patch whereas Russian and Polish stocks have noted a one percent fall.
Greece and its next bailout payment and the possibility of early Italian elections have raised concerns among experts.
"Emerging markets face stable U.S. Treasury yields ... versus a jump in G10 currency volatility on U.S. and euro zone politics as (President Donald) Trump returns from his voyage, the UK nears its 8 June elections and Italy looks to maybe join Germany autumn elections," Simon Quijano-Evans, emerging markets strategist at Legal & General Investment Management, wrote.
Moreover, South Africa's rand extended losses for a second day after President Jacob Zuma defeated another call from inside the ruling ANC party to step down.
In other developments, Central European currencies weakened, even though European Central Bank President Mario Draghi said subdued inflation meant substantial stimulus would still be required, dampening expectations that some policy support might be withdrawn at the ECB's June 8 meeting.
Read more at Reuters.