Emerging-market stocks drop from three-month high on Fed comments

Emerging-market stocks retreated from its highest in three months on bets that the Fed will hike interest rates sooner than later due to the rising inflation in the world’s biggest economy. 

The MSCI Emerging Markets Index shed 0.2% to 992.00 in Hong Kong. The monthly gain is pared down to 3.2% because of this although the gauge is still poised to its sharpest gain since May. 

The Shanghai Composite Index rose by 0.7% to 3,321.05. Yesterday, the benchmark Index surged by 2.2% for a total of 3.4% in increase for the month of February. 

The CSI 300 Index climbed by 0.7%. Meanwhile Chinese stocks in Hong Kong also rallied with the Hang Seng Index and the Hang Seng China Enterprises Index adding 0.3% each.China’s Premier Li Keqiang called for a fiscal policy that was more active.