Emerging-market stocks retreated for an eighth day, capping the longest slide since 2006, as a decline in India’s rupee to an eight-week low sank the nation’s shares and spurred concern capital inflows will slow.
The MSCI Emerging Markets Index decreased 0.2 percent to 992.99. The S&P BSE Sensex fell for a fifth day on speculation the rupee’s slump will deter the central bank from easing liquidity curbs. The Borsa Istanbul National 100 Index dropped to the lowest level in two months as Akbank TAS paced losses in Turkish lenders. Philippine shares slid the most since Sept. 30 after the nation was battered by Super Typhoon Haiyan.
India’s rupee dropped after the U.S. jobs report released on Nov. 8 bolstered the case for the Federal Reserve to trim economic stimulus. Fed policy makers will pare the monthly pace of bond-buying to $70 billion at their March meeting, according to the median estimate of 32 economists in a Bloomberg News survey Nov. 8. Super Typhoon Haiyan headed for Vietnam after killing as many as 10,000 people in the Philippines.
“The tapering debate is causing uncertainty in the financial markets,” Chad Morganlander, a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co., which oversees about $150 billion of assets, said by phone. “The U.S. economic activity and when the Fed will pivot on monetary policy have been and will be the key drivers for the financial markets in the next several weeks.”
Eight of 10 groups in the MSCI Emerging Markets Index dropped today, led by industrial shares. The broad measure trades at 10.4 times projected earnings, compared with the valuation of 14.4 for the MSCI World Index.
The iShares MSCI Emerging Markets Index exchange-traded fund declined 0.5 percent to $40.95. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, retreated 1.5 percent to 23.48.
Brazil’s Ibovespa climbed for the first time in five sessions as oil company Petroleo Brasileiro SA led gains in commodities producers. Trading in Eike Batista’s OSX Brasil SA was suspended by the exchange. The shipbuilder submited bankruptcy protection documents in a Rio state court today, Eduardo Munhoz, a partner at law firm Mattos Filho, Veiga Filho, Marrey Jr. & Quiroga Advogados that is an adviser to Batista, said in a text message.
The Micex Index declined for a second day in Moscow as OAO Gazprom slumped to a one-month low. OAO Moscow Exchange, the nation’s main bourse, jumped 1.7 percent after being added to the MSCI Inc.’s Russia Index last week, effective Nov. 27.
The Borsa Istanbul National 100 Index sank 2.4 percent as Akbank dropped to the lowest level in two months. The Budapest Stock Exchange Index fell 1.1 percent. Mol Nyrt. fell to a two-year low after Hungary’s largest refiner warned it may sell its INA Industrija Nafte d.d. unit as talks with the Croatian government over management rights in the company stalled.
The S&P BSE Sensex fell for a fifth day as State Bank of India, the nation’s biggest lender, slid to a two-week low. Engineering company Larsen & Toubro Ltd. dropped the most in three weeks. Drugmaker Dr Reddy’s Laboratories Ltd. advanced the most on the benchmark gauge. The rupee sank to as low as 63.4450 per dollar, the weakest level since Sept. 18.
The rupiah slid 1.3 percent to 11,560 per dollar, the biggest drop since Aug. 20, as of 4:33 p.m. in Jakarta, prices from local banks show. It reached 11,565 earlier, the weakest level since Oct. 4. Bank of the Philippine Islands paced a 1.4 percent drop in the nation’s equity gauge after the storm killed as many as 10,000 people.
Dubai’s DFM General Index dropped 2.8 percent, the most since Sept. 4, trimming gains for the year to 74 percent. Emaar Properties PJSC, the developer of the world’s tallest skyscraper, fell the most since Sept. 3.
China’s stocks rose for the first time in four days as train makers China CNR Corp. and CSR Corp. advanced at least 7 percent after National Business Daily reported state-owned China Railway Corp. will increase investment in new projects this year. October Industrial output beat estimates and manufacturing investment strengthened, according to data released Nov. 9 by the National Bureau of Statistics.