MSCI Emerging Markets Index Falls 1.3%, EM Currency Gauge Down 0.2%

The divergence in magnitude is the story: equities fell several times more than currencies, suggesting the pressure is concentrated in risk assets rather than in exchange rates themselves. That distinction matters for emerging-market exposure, since a currency-led selloff and an equity-led one point to different drivers and different transmission channels. Whether the gap between the two gauges widens or narrows in the next session is the open question.