Emerging Stocks Retreat to Two-Week Low on China, Fed Outlook
- MSCI benchmark heads for biggest annual decline since 2011
- Turkey's lira advances on EU pledge for aid, membership talks
Stocks prices are displayed on an electronic stock board at Asia Plus Securities PCL headquarters in Bangkok, Thailand, on Tuesday, Feb. 19, 2013. Thailand’s baht halted a three-day decline and government bonds rose for a second day amid optimism an improving local economy and relatively higher yields than developed nations will spur more fund inflows.
Photographer: Dario Pignatelli/BloombergEmerging-market equities dropped to a two-week low amid concern China’s slowdown will limit growth in developing economies as the U.S. moves closer to raising interest rates.
A gauge of raw-material stocks dropped to a two-month low as all 10 industry groups in the MSCI Emerging Markets Index declined. South Korean shares slid the most in two months and the won weakened after industrial production missed estimates. Brazil’s real slumped to a one-month low as a corruption probe threatened to sidetrack President Dilma Rousseff’s economic agenda. The Turkish lira strengthened amid prospects for European Union aid to stem the inflow of refugees.