Emerging Stocks Weighed Down by Latest Twists in Trade Saga

Emerging market stocks dropped as US-China trade tensions once again bubbled to the surface, while dollar weakness fueled a surge in developing-nation currencies.

TheMSCI Emerging Markets Equity Index slid as much as 1.2% before closing the day down 0.3% at its lowest level in three weeks. Samsung Fire & Marine Insurance Co. and Hyundai Mobis Co. Ltd. led the losses.

US President Donald Trump and Chinese President Xi Jinping are likely to speak this week amid strains between Washington and Beijing. The two countries have traded accusations that each has violated the terms of last month’s broad trade pact. ...