Mumbai - Emerging-market stocks fell, with the benchmark index set for its biggest weekly drop in two months, after China’s money-market rates rose and earnings from Great Wall Motor Co. to Kernel Holding SA trailed estimates.
Ukrainian sunflower-oil producer Kernel slid the most since April 2010 in Warsaw while lender Alior Bank SA lost 1.2 percent after UniCredit SpA removed the stock from its top picks list. South Africa’s rand led declines versus the dollar among developing-nation peers.
Turkey’s lira depreciated 0.3 percent against the greenback as an industrial confidence index fell.
The MSCI Emerging Markets Index decreased 0.5 percent to 1,025.95 at 12:41 p.m. in London, extending this week’s loss to 1.6 percent.
China money rates were poised for the biggest weekly advance since a cash squeeze in June.
Earnings missed estimates at more than half of the 96 companies in the benchmark gauge for developing nations so far this season, data compiled by Bloomberg show.
“Signs of increasing systemic stress in China and a less good cyclical momentum for the global economy following disappointing data in the US” have weighed on stocks, Maarten-Jan Bakkum, emerging-markets strategist at ING Investment Management in The Hague, said by e-mail.
Employers in the US added fewer workers to payrolls than projected in September, data showed this week, indicating the world’s largest economy had little momentum leading up to the federal government shutdown.
Data on durable-goods orders and consumer confidence are scheduled for release today.
Emerging-market stocks have lost 2.8 percent in 2013, compared with a 20 percent gain in the MSCI World Index of developed-nation shares.
All 10 industry groups in the MSCI Emerging Markets Index declined today, led by industrial companies.
The S&P GSCI gauge of 24 commodities decreased as much as 0.3 percent, headed for the biggest weekly drop since June.
China is the biggest buyer of industrial metals.
Poland’s WIG30 Index retreated 0.3 percent, led by Kernel.
The stock slid 12 percent after earnings for the year ended June 30 slumped to $111 million, missing the $129 million mean estimate of nine analysts on Bloomberg.
Alior Bank slipped the most in a week on a closing basis as a “surprise announcement of accounting charges” prompted UniCredit to remove the stock from its top-pick list. The zloty lost 0.1 percent versus the euro.
The koruna was little changed after gaining the most in a month yesterday as investors weighed signs of Czech economic recovery against risks the country’s general elections will fail to produce a stable government.
The Turkish lira fell to 1.9861 per dollar, headed for its first weekly depreciation since September.
A gauge of manufacturing confidence dropped to 107.5 in October from 108.5 last month while capacity utilization rose to the highest since November 2011.
The benchmark Borsa Istanbul National 100 Index added 0.5 percent.
The rand depreciated to 9.8338 a dollar while the benchmark FTSE/JSE Africa All Shares Index declined for the second time in 12 days in Johannesburg.
African Bank Investments Ltd., South Africa’s largest provider of unsecured loans, slumped 6.5 percent after the lender reported a goodwill impairment of 4.6 billion rand ($468 million).
The premium investors demand to own emerging-market debt over US Treasuries was little changed at 312 basis points, according to JPMorgan Chase & Co indexes.
The developing-country equities gauge trades at 10.6 times projected 12-month earnings, lower than the MSCI World’s 14.3 times, data compiled by Bloomberg show.
The S&P BSE Sensex of Indian shares lost 0.2 percent, poised to end three weeks of gains after briefly exceeding its record closing high yesterday.
Great Wall Motor sank the most in two years in Hong Kong as third-quarter profit at China’s biggest sport-utility vehicle maker increased less than estimates.
The Hang Seng China Enterprises Index and the Shanghai Stock Exchange Composite Index each tumbled at least 1.4 percent.
The gauge slid 2.8 percent this week.
Money rates in China have risen after the central bank refrained from injecting funds through open-market operations.
The seven-day repurchase rate gained 1.57 percentage points this week to 5.06 percent, according to a daily fixing by the National Interbank Funding Center.
China’s under-performance “is a clear worry,” Bakkum of ING Investment said.
“It suggests that the Chinese recovery will no longer be a tailwind for EM.” - Bloomberg News