(Bloomberg) -- Argentina and Russia are giving money managers a brutal reminder this week of idiosyncratic risks in emerging markets. 

In Argentina, the surprise win of Javier Milei in the primary elections has unnerved investors, forcing the government to devalue the currency by 18% on Monday. In Russia, the central bank called an extraordinary policy meeting for Tuesday after the ruble crashed through the 100 per dollar level for the first time since March 2022.

“There’s a lot of pressure on EM assets right now,” said Aninda Mitra, a macro and investment strategist at BNY Mellon Investment Management in Singapore. “Investors are caught between a hawkish Federal Reserve, a China slowdown, plus we’ve got these local idiosyncratic factors that are flaring up.”

Emerging market stocks and currencies are already set for their worst month since February amid a surge in Treasury yields and as China faces the threat of deflation.

The ruble climbed 1.4% to 96.34 per dollar on Tuesday ahead of the release of the central bank’s statement on the key rate due at 10:30 a.m. local time.

--With assistance from Yuliya Fedorinova.

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