Emerging Stocks Drop on China Concern as Real, Ringgit Slump
- Brazil's stocks, currency tumble on worsened export outlook
- Raw-material shares fall the most among 10 industry groups
This article is for subscribers only.
Emerging-market stocks slid to a three-week low and currencies weakened amid signs that China’s economic slowdown is deepening, hurting profit outlooks for mining companies and other exporters.
The Bloomberg Commodity Index slumped 1.3 percent, ending a two-day gain after a report showed profits for China’s industrial companies fell the most in at least four years. Equities in Brazil, which sends about 20 percent of its exports to China, fell to the lowest since 2009 as the real weakened for a second day. The ringgit tumbled to a 17-year low amid a U.S. investigation of a Malaysian state investment company. Zambia’s kwacha slid to the weakest on record after Moody’s Investors Service downgraded the country’s credit rating.