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Iran Reprisal Fears, Kashkari Warning Spark Selloff in EM Assets

Emerging-market assets declined after strong US payroll data on Friday forced traders to reprice odds the Federal Reserve will cut interest rates in the first half of the year.

US nonfarm payrolls climbed 303,000 last month, the strongest in nearly a year, prompting a shift in Fed swaps and a rise in 10-year Treasury yields. The blowout report sapped demand for risky assets — indexes for emerging stocks and currencies closed lower.