Emerging Markets on Edge Amid Middle East Tensions

Emerging market assets remained subdued as the Israel-Iran conflict entered its fifth day. U.S. President Trump's call for Tehran's evacuation added to investor caution. Market indices for equities and currencies were stable, reflecting global market unease, while the shekel showed some recovery against the dollar.

As tensions escalate with the Israel-Iran conflict now in its fifth day, emerging market assets are showing signs of restraint. The market remains cautious after U.S. President Donald Trump urged the evacuation of Tehran, prompting investors to become hesitant with their positions.

Indices for emerging market equities and currencies showed little change, a stark contrast to the previous day's modest gains. This was largely seen as a ripple effect of the Middle East conflict, which has grown more complex following Trump's early departure from the G7 summit.

Despite the geopolitical tension, Israel's currency, the shekel, saw a notable rise against the dollar following historic gains, while Fitch Ratings suggested that the fallout from the conflict remained within manageable levels for Israel's financial rating.

(With inputs from agencies.)