Emerging-Market Stocks Drop as Chinese, Brazilian Shares Slide
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Emerging-market stocks fell and currencies weakened as Chinese shares slumped for a fourth day and Russia unexpectedly cut its key interest rate.
The ruble closed at a record low against the dollar. Petroleo Brasileiro led a 1.8 percent drop in the Ibovespa as Moody’s Investors Service cut the state-run oil producer’s credit rating to one level above junk, adding to speculation that President Dilma Rousseff will struggle to restore investor confidence in Brazil. The real weakened the most among 31 major currencies tracked by Bloomberg. Chinese stocks capped their biggest weekly loss in a year.