Emerging Stocks Drop as Asia Declines Offset U.S. Rate Outlook

Emerging-market stocks slumped for a fifth straight day as Asian shares sank amid volatility in China’s equity market, offsetting economic data that weakened the case for an increase in U.S. interest rates.

The MSCI Emerging Markets Index dropped 0.5 percent to 1,004.22, bringing its retreat in May to 4.2 percent. Brazil’s real weakened 0.6 percent to a two-month low against the dollar as a Bloomberg gauge tracking 20 developing-nation currencies posted a 2.1 percent monthly decline.