Emerging-market stocks retreated, sending the benchmark measure down 10 percent from this year’s peak, as disappointing Chinese data added to concern the global economy is faltering. India’s rupee slumped to a record.
PetroChina Co. (857) fell to the lowest price since 2010, while OAO Lukoil paced losses among Russian commodity stocks. Brazil’s Ibovespa extended a slump from this year’s high to 19 percent, as beef producer JBS SA slid. The rupee posted its largest drop in more than 20 months on bets the central bank will refrain from lowering borrowing costs. Mexico’s IPC index rose the most among major equity benchmarks in the Americas and Europe.
The MSCI Emerging Markets Index retreated 0.8 percent to 972.89, extending the decline from its Jan. 3 peak to 10 percent. China’s industrial production rose a less-than-forecast 9.2 percent last month, while export gains were at a 10-month low and imports dropped, data over the weekend showed. A government report on June 7 showed U.S. employers took on more workers than forecast last month.
“Investors are not seeking additional risk at this point,” Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which oversees about $380 billion, said by phone. “The data from North America continues to indicate recovery, but that’s not necessarily true for the rest of the world. The sun appears to be rising in the U.S. faster than in other geographies, and China is on the list.”
Consumer discretionary and commodity shares led losses in a measure of developing-nation stocks among 10 groups. The broad gauge extended this year’s drop to 7.8 percent, compared with a 10 percent jump in the MSCI World Index.
The iShares MSCI Emerging Markets Index exchange-traded fund slid 1.4 percent to $40.14. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, dropped 2.3 percent to 23.76.
Brazil’s Ibovespa (IBOV) fell to the lowest since October 2011 as JBS tumbled the most in six months after the world’s largest beef producer agreed to buy meat-processing plants in Brazil from Marfrig Alimentos SA.
Mexico’s IPC index rose 1.2 percent on bets that improving economic data will fuel a rebound from the lowest valuations in 11 months. Lender Grupo Financiero Banorte SAB advanced 3.1 percent, while steelmaker Industrias CH SAB climbed 3.3 percent and miner Industrial Penoles SAB added 5.4 percent.
Russian shares erased gains as metal producers followed commodities lower and Bank Rossii left its main interest rates unchanged. Lukoil slid 1.1 percent, while OAO Severstal, the nation’s second-largest steelmaker, tumbled 5.3 percent.
Turkey’s lira slumped as Prime Minister Recep Tayyip Erdogan warned demonstrators and lashed out against financial speculators for seeking to profit from protests against his government. The Borsa Istanbul Stock Exchange National 100 Index slid 2.5 percent as Turkiye Garanti Bankasi AS, the country’s biggest lender, lost 3.4 percent.
South Africa’s rand declined to the lowest level since March 2009. The nation plans to sell its first foreign-currency bond in 18 months, with analysts forecasting the rand will rebound, reducing repayment costs.
The Hang Seng China Enterprises Index (HSCEI) decreased 0.6 percent, extending declines for a ninth day, the longest losing streak since March 26, 2012. Financial markets in the mainland were closed for a holiday. PetroChina sank a fourth day.
India’s rupee sank to a record as investors favored the dollar on speculation U.S. policy makers will curb asset purchases, triggering concern about inflation in a nation that imports about 80 percent of its oil.
Egyptian shares fell to the lowest in more than 10 months on investor concern anti-government protests will gain momentum as President Mohamed Mursi marks the first anniversary of his election. Commercial International Bank Egypt SAE, the country’s biggest publicly traded lender, slid 4.1 percent.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries slid one basis point, or 0.01 percentage point, to 312 basis points, according to JPMorgan Chase & Co.’s EMBI Global Diversified Index.