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London - Emerging-market stocks dropped the most in a week, led by Chinese companies as retail sales growth slowed during the Lunar New Year festival and mining companies as metal prices slumped.
Daphne International Holdings, a Chinese footwear maker, sank the most in five weeks in Hong Kong to lead consumer stock declines.
Steelmaker OAO Severstal fell for the first time in four days in Moscow and Zhaojin Mining Industry, a Chinese gold producer, dropped to the lowest level since August 31 in Hong Kong.
Impala Platinum fell 3.1 percent and Gold Fields 2.7 percent in Johannesburg.
The MSCI Emerging Markets Index fell 0.3 percent to 1,063.46 at 10:59 a.m. in London, snapping four days of gains.
The gauge’s 30-day volatility dropped to 6.357, the lowest level since 1997.
The London Metal Exchange Index fell 0.1 percent, its first decrease in four days.
China’s holiday retail sales rose at the slowest pace in four years.
“The economic recovery in China remains weak,” Jitra Amornthum, head of research at Finansia Syrus Securities Pcl, said by phone in Bangkok.
“The weaker Japanese yen will have an adverse impact on some exporters in the region especially in South Korea.”
The South Korean won dropped for the first time in a week versus the dollar as the yen’s decline following the Group of 20 nations meeting sparked concern South Korea will step in to weaken its currency in support of exports.
G-20 finance ministers and central bankers ended talks in Moscow on February 16 pledging not to “target our exchange rates for competitive purposes,” without singling out Japan.
The yen has tumbled almost 14 percent against the dollar in three months in response to stimulus policies from Prime Minister Shinzo Abe.
Russia’s Micex Index dropped less than 0.1 percent as oil prices slid for a second day and metals dropped.
Severstal, the steelmaker controlled by Alexey Mordashov, lost 1.5 percent.
OAO Lukoil, Russia’s second-biggest oil producer, slid 0.5 percent, its third day of losses.
OAO Novorossiysk Commercial Sea Port, Russia’s largest Black Sea port, fell 2.5 percent, heading for the biggest decline since December 19.
Turkey’s ISE National 100 gauge climbed 0.2 percent.
BIM Birlesik Magazalar AS, an operator of food and basic consumer - goods discount stores in Turkey, lost 2.1 percent, falling for the first time in three days and leading declines by index points.
Aksigorta AS, the Turkish insurer co-owned by Belgium’s Ageas, rose 3.2 percent in Istanbul, after 2012 net income beat estimates.
Poland’s WIG 20 Index added 0.5 percent, heading for the highest close in a week.
Telekomunikacja Polska SA rallied 3.7 percent, the most in 17 months, as ING Groep NV upgraded Poland’s largest phone company to hold from sell following the stock’s 39 percent slump last week.
The company reached a record low on February 14 after cutting its dividend proposal for the second time in four months amid declining profit.
The Czech Republic’s PX Index fell 0.2 percent as Komercni Banka AS, the Czech unit of Societe Generale SA, added 1.4 percent.
CEZ AS fell for a fourth day after the Bulgarian government said it may revoke the Czech utility’s power- distribution license in the southeast European country.
South Africa’s FTSE/JSE Africa All Shares Index dropped 0.5 percent, declining for a third day and heading to the lowest close since Jan. 30.
India’s benchmark stocks index added 0.2 percent, the first gain in three days.
Sri Lanka’s Colombo All-Share Index tumbled 1 percent, the most in almost three months.
A gauge of consumer-discretionary companies sank 0.7 percent, the most among the 10 industry groups in the MSCI Emerging Markets Index, followed by a 0.5 percent drop for raw- materials producers.
The developing-nations measure has added 0.8 percent this year, trailing a 5.2 percent increase by the MSCI World Index.
The emerging-markets index trades at 10.4 times estimated profit, compared with the MSCI World’s 13.8 times, data compiled by Bloomberg show.
The extra yield investors demand to own emerging-market debt over US Treasuries was unchanged at 275, according to JPMorgan Chase & Co.’s EMBI Global Index.
The Hang Seng China Enterprises Index declined 0.9 percent, its biggest drop since February 7.
The Shanghai Composite Index fell 0.5 percent in its first trading day after the weeklong break.
China’s holiday retail sales rose at the slowest pace in four years.
Daphne lost 3.8 percent, the lowest level since February 1. Intime Department Store Group Co. slid 3.7 percent in Hong Kong, the most since January 25.
Zhaojin Mining slid 3.5 percent and Zijin Mining Group Co. declined 3.9 percent in Hong Kong.
Bullion tumbled 3.4 percent last week as improving economic data from the US reduced the appeal of haven assets.
Hyundai Motor Co. dropped 1.9 percent in Seoul, the most since February 6.
Kia Motors slipped 2.4 percent, the steepest loss since February 4.
A stronger won erodes the competitiveness of exporters.
The won reached its highest level since October 2008 against Japan’s currency.
The Group of 20 nations refrained from censuring Japan’s policies that have weakened the yen.
AU Optronics climbed 6.6 percent, its steepest gain in two months in Taipei after settling an antitrust case and as January sales gained.
Epistar, a light-emitting diode maker, jumped 6.9 percent in Taipei.
Vincent Yu, an analyst at Jih Sun Securities, said Epistar will benefit as the peak season for the industry approaches.
Far EasTone Telecommunications, a mobile-phone operator, slumped 5.2 percent, the most since July 24.
Barclays cut the stock to equalweight, the equivalent of hold, from overweight, citing “disappointing prospects.”
Kweichow Moutai, China’s biggest liquor maker by market value, slid 4.4 percent in Shanghai.
Sales at shops and restaurants monitored by China’s Ministry of Commerce increased 14.7 percent in the February 9 to February 15 holiday period from the year-earlier break, the ministry said in a statement on February 15.
That’s the least since a 13.8 percent gain in 2009, according to previously released figures.
The FTSE Bursa Malaysia fell 0.4 percent, its steepest decrease since February 6.
The ringgit dropped by the most in two weeks as investors focus on an upcoming general election in Malaysia, with polls showing sliding popularity of Prime Minister Najib Razak.
The premier must dissolve parliament by April 28.
Thailand’s SET Index climbed 0.2 percent, trading near the highest level since November 1994.
Gross domestic product increased 18.9 percent in the three months through December from a year earlier, after expanding a revised 3.1 percent in the previous quarter, the government said today.
The median of 14 estimates in a Bloomberg News survey was 15.3 percent growth.
The Philippine Stock Exchange Index added 0.7 percent to a record.
A Nathaniel Rothschild victory at Bumi Plc’s meeting this week may force the company to buy out shareholders in a subsidiary, said a commissioner at Indonesia’s financial services regulator, the OJK.
Should Rothschild’s bid to oust the Bumi Plc board be deemed to constitute a change of control at PT Bumi Resources, the Indonesian coal company 29 percent-owned by Bumi Plc, it would trigger a mandatory offer for the remainder of Bumi Resources’ shares, the OJK’s Nurhaida, who goes by only one name, said today in Jakarta.
Bumi Resources jumped 9.4 percent to the highest since August 24, leading gains among emerging-market stocks. - Bloomberg News