NEW YORK, July 17 — Emerging-market shares fell today as worries over the US-China trade conflict resurfaced. Currencies in the developing world mostly weakened as the dollar gained.

President Donald Trump said yesterday the United States had a long way to go to conclude a trade deal with China and could impose tariffs on another US$325 billion (RM1.3 trillion) worth of Chinese goods if it thought they were necessary.

MSCI’s index for emerging-market shares fell 0.5 per cent, pulled lower by China and Hong Kong.

South Korea’s Kospi slid nearly 1 per cent and the won , Asia’s worst-performing currency this year, slipped further, amid a political and economic dispute with Japan and the possibility of a rate cut when the Bank of Korea meets tomorrow.

Outside Asia, Russian stocks slid 1.3 per cent as declines by Surgutneft and Gazprom weighed on the market.

Developing-world currencies were mostly lower as the dollar rose overnight following robust US retail data and a Brexit-driven dive in the British pound.

South Africa’s rand slipped 0.2 per cent a day before a central bank rate decision. Russia’s rouble gained as oil prices rose.

In Turkey, stocks advanced 0.5 per cent. The lira was little changed.

Turkey started taking delivery of Russia’s S-400 air defense system last week, defying US warnings that doing so would mean the Pentagon would kick it out of the F-35 stealth fighter program and that it could be subject to sanctions.

"One thing we are keeping an eye on is any possible sanctions that the US may impose on Turkey,” said Jason Tuvey, a senior EM economist at Capital Economics. "That would have a considerable impact on the markets, in particular the banking sector which is already vulnerable given its debt woes.— Reuters