Emerging-Market Stocks Plunge Most in 20 Months on China
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Emerging-market stocks dropped the most in more than 20 months, currencies weakened and government borrowing costs rose after China’s cash crunch worsened and the Federal Reserve said it may reduce monetary stimulus this year.
The MSCI Emerging Markets Index slid 4 percent to 908.49, capping the biggest decline since September 2011. Its 10-day volatility rose to an 11-month high. Turkey’s benchmark stock index lost 6.8 percent, entering a bear market, led by banks. Twenty two out of 24 developing-nation currencies tracked by Bloomberg fell as the Turkish lira and India’s rupee hit record lows. South Africa’s bonds yields surged and the rand fell a fifth day. Brazil’s Ibovespa rebounded from a four-year low.