June 9 (Bloomberg) -- Emerging-market stocks fell, dragging a benchmark index to a two-week low. on concern Europe’s debt crisis will curb global economic growth after Fitch Ratings called the U.K.’s fiscal challenge “formidable.”
The MSCI Emerging Markets Index slid 0.4 percent to 887.93 as of 1:38 p.m. in Singapore, the lowest close since May 26. LG Electronics Inc., South Korea’s second-largest electronics maker, fell 3.6 percent after BNP Paribas SA cut its rating. PT Astra Agro Lestari, Indonesia’s biggest listed plantation company that only plants oil palm trees, dropped 1.9 percent after palm oil futures slid for a third day.
“I’m scared of the U.K.’s situation, particularly if it cuts the budget because the scale of its economy is significant enough to create a huge impact,” said Castor Pang, Cinda International Ltd.’s research director in Hong Kong.
Global investors have little confidence in Europe’s efforts to contain its debt crisis, a quarterly poll of investors and analysts who are Bloomberg subscribers showed, with 73 percent of those surveyed calling a default by Greece likely. The International Monetary Fund said economic risks have risen “significantly.”
Taiwan’s Taiex index dropped 1.1 percent to 7,071.67, the lowest since Sept. 2. Indonesia’s Jakarta Composite index fell 0.3 percent and the Philippine Stock Exchange Index lost 0.6 percent.
In China, the Shanghai Composite Index added 0.2 percent to 2,517.82, after swinging between gains and losses at least four times. Liquor and household-appliance makers gained on speculation salary increases will boost sales, overshadowing losses by banks and automakers on concern the European crisis will hurt growth.
Industrial Bank Co. fell 1.1 percent to a 13-month low on the prospect data later this week will show lending growth slowed last month. SAIC Motor Corp. dropped 2.9 percent as China’s passenger-car sales growth slowed.
The Bombay Stock Exchange’s Sensitive Index climbed 0.2 percent to 16,651.39, its first gain in three days.
Bharti Airtel Ltd., the largest wireless operator, rose 5.9 percent and Steel Authority of India Ltd. climbed 0.7 percent after their ratings were raised. DLF Ltd. gained 1.2 percent after the Economic Times reported India’s biggest developer got approval to revive a plan to build an economic zone in the eastern city of Kolkata.
To contact the reporter on this story: Chan Tien Hin in Kuala Lumpur at email@example.com
To contact the editor responsible for this story: Linus Chua at firstname.lastname@example.org