Emerging-market stocks headed for a three- week low as a plunge in oil prices spurred the longest slump on record in a gauge of energy companies. Russia’s ruble fell to the weakest level in more than two weeks.
China’s Cnooc Ltd. and PetroChina Co. sank at least 2.4 percent in Hong Kong. Oil & Natural Gas Corp. led Indian shares to the steepest drop since 2013. The Taiex Index slid 2.4 percent as Taiwan Semiconductor Manufacturing Co. fell 4.3 percent. Dubai’s DFM General Index tumbled 5.2 percent to lead Gulf equity gauges lower. The ruble lost 1 percent versus the dollar and Malaysia’s ringgit depreciated to a 2009 low.
The MSCI Emerging Markets Index fell 0.9 percent to 932.63 at 8:25 a.m. in London, extending a global selloff, as crude oil extended losses below $50 a barrel and the prospect of Greece dropping the euro weighed on equity markets. A developing-nation gauge of energy shares slid for an 11th day to a three-week low.
SPOOKED BY OIL
“Investors are spooked as a continued slump in oil could indicate an underlying weak global demand,” Jonathan Ravelas, chief market strategist at Manila-based BDO Unibank Inc., said by phone. “The prospect of Greece leaving the European Union is adding to the uncertainty.”
The developing-nation measure has lost 2.5 percent this year and trades at 10.8 times its 12-month projected earnings, data compiled by Bloomberg show. The MSCI World Index has lost 2.5 percent and is valued at a multiple of 15.2.
All 10 industry groups in the emerging-markets gauge fell, led by energy and technology shares. Cnooc and PetroChina retreated for the first time in four days. The Hang Seng China Enterprises Index lost 1.8 percent. The Shanghai Composite Index was little changed as a gauge of small-company shares rallied the most in 18 months.
Oil & Natural Gas, India’s largest energy explorer, retreated 3.7 percent, the most in the S&P BSE Sensex index, which slid 2.1 percent.
Taiwan Semiconductor, the world’s largest contract manufacturer of chips, had its steepest drop since July, dragging the Taiex Index by the most since Oct. 13. The Kospi slid 1.7 percent to a 16-month low as Samsung Electronics Co. fell 2.9 percent.
The DFM General Index sank for a third day, led by a 8.3 percent slump in Emaar Properties PJSC. Saudi Arabia’s equity gauge lost 4 percent, while stock indexes in Abu Dhabi and Qatar decreased at least 2 percent.
RUBLE SLIDES
The ruble weakened for a second day, while the Micex Index advanced 1.7 percent, boosted by gains in OAO GMK Norilsk Nickel and OAO Magnit. South African shares rose 0.6 percent as Gold Fields Ltd. and AngloGold Ashanti Ltd. added at least 4 percent. Gold climbed for a third day as slumping equity markets spurred demand for a haven.
The FTSE Bursa Malaysia KLCI Index fell 1.1 percent, its fifth day of losses. The ringgit headed for its weakest close since July 2009 as the slump in crude damped the oil exporting nation’s economic outlook. 1Malaysia Development Bhd., a state investment company, said it is a “responsible borrower,” amid a report it failed to repay a 2 billion ringgit ($563 million) loan last month.
Bloomberg