Manila - Emerging-market stocks declined to the lowest level in more than six weeks after China’s finance minister damped speculation the government will boost economic stimulus.
Russia’s ruble weakened with equities.
The MSCI Emerging Markets Index dropped 0.8 percent to 1,045.71 at 1:55 pm in London, its third day of losses.
PetroChina led a gauge of Hong Kong-traded Chinese shares to a two-month low.
OAO Alrosa, Russia’s largest diamond producer, decreased 2.5 percent after its chief executive officer stepped down.
The ruble and South Africa’s rand depreciated at least 0.3 percent versus the dollar.
China’s Finance Minister Lou Jiwei said growth faces downward pressure and there won’t be major policy changes in response to economic indicators.
Russian stocks have slid since billionaire Vladimir Evtushenkov’s arrest last week soured sentiment already hurt by sanctions from the US and European Union over the country’s role in the Ukraine conflict.
“We have had increasing uncertainty among clients about the effectiveness of policies that have been pursued by the Chinese authorities to stimulate growth,” Koon Chow, an emerging-markets strategist at Barclays in London, said by phone from London.
“Investors at the same time are feeling the global growth outlook is difficult.”
The developing-nation stock measure has risen 4.3 percent this year and trades at 11.1 times 12-month estimated earnings, data compiled by Bloomberg show.
The MSCI World Index has gained 4.6 percent and is valued at a multiple of 15.
The ruble weakened for the third time in four days versus the dollar.
The Micex Index fell 0.8 percent, its fourth day of declines, set for the longest slump since the six days ended July 21.
Alrosa dropped the most since September 12 on a closing basis after chief executive Fyodor Andreev resigned for health reasons.
Commodities Plunge
Saudi Arabia’s benchmark stock index decreased 1.2 percent, the most since June 16, while stocks in the Czech Republic retreated for the first time in four days.
Turkey’s lira was poised for a six-month low, while the rand headed for the weakest level since February 10.
Anglo American Platinum dropped to an eight-month low in Johannesburg on a closing basis to lead a 0.8 percent loss in the the FTSE/JSE Africa All Share Index.
Commodities extended declines to a five-year low on speculation the strengthening dollar and signs of slowdown in China will curb demand for raw materials.
PetroChina retreated 2.5 percent and the Hang Seng China Enterprises Index fell 1.7 percent.
The Shanghai Composite Index also slid 1.7 percent, its first loss in four days.
China data last week showed foreign direct investment dropped to a four-year low and home prices decreased in all but two cities tracked by authorities.
A private gauge of Chinese manufacturing due to tomorrow may decline for a second month, a survey showed.
Rights Offer
Nine out of 10 industry groups in the developing-nation stock gauge fell, led by technology companies.
Agile Property Holdings tumbled 7.2 percent in Hong Kong, the most in the MSCI Emerging Markets Index in percentage terms, after saying it plans to raise HK$2.75 billion ($355 million) in a rights offer.
Taiwan’s Taiex Index lost 1.1 percent while India’s S&P BSE Sensex Index added 0.4 percent.
South Korea’s won rose the most since August 22 after Standard & Poor’s raised the country’s outlook to positive from stable, while the nation’s benchmark Kospi Index retreated 0.7 percent.
The premium investors demand to own developing-country debt over US Treasuries widened three basis points to 283 basis points, according to JPMorgan Chase & Co. indexes. - Bloomberg News