Emerging Stocks Have Worst Week Since 2012 as Bears Take Charge
- Developing-nation equities slip below `channel' trading band
- Emerging-markets gauge ends week at lowest level since 2009
China Data Signals Further Decline in Growth Prospects
Emerging-market stocks slid below a trading band for the first time in four years as a rout exacerbated by China’s yuan devaluation sent the benchmark gauge to the worst weekly drop in three years and currencies to the longest run of losses this century.
The MSCI Emerging Markets Index, the measure covering nations from China to Peru, fell below a level that had supported prices since October 2011, ending a pattern that technical analysts call a “channel” in favor of bears. Taiwan, Brazil and Indonesia entered a bear market this week while Turkey was on the cusp of a 20 percent retreat from their peaks earlier in the year. The Russian ruble fell to a record closing low, leading a ninth weekly retreat in emerging market currencies.