Ongoing Middle East conflict and oil prices surpassing $100 drag down emerging market stocks and currencies

Golden Ten Data reported on March 13 that as the Middle East conflict continues to escalate, Brent crude oil remains above $100 per barrel, and emerging market stocks are heading for a second consecutive week of declines. The MSCI Emerging Markets Equity Index has fallen nearly 2% this week, marking its second straight week of losses and the longest losing streak since mid-October last year. Indonesia's stock market is leading the decline in Asia and is poised to enter a bear market. Deutsche Bank analysts, including Jim Reid, wrote in a report: "The market is clearly increasingly concerned that this conflict could evolve into a longer-lasting confrontation." They pointed out that uncertainty has reignited inflation concerns, driving central bank policy expectations to the most hawkish pricing so far this year. Meanwhile, currencies of countries with higher energy dependence are experiencing intensified declines. The US dollar has risen to its strongest level since early December last year, adding extra pressure on Asian currencies. Both the Indian rupee and the Philippine peso hit historic lows on Friday.