Emerging Stocks Fall as China Rout Deepens; Ruble Rises With Oil
- Shanghai Composite falls 6.4 percent to lowest in 13 months
- Iraq says Saudis, Russians more flexible on oil output cuts
Here's Why Investors Are Worried Over Emerging Markets
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Emerging-market stocks snapped a two-day advance as Chinese shares tumbled to a 13-month low on concern outflows will accelerate as the economy slows. Russia’s ruble rebounded with oil following a selloff Monday.
The Shanghai Composite Index slid more than 6 percent after data showed outflows from China reached a record $1 trillion last year, more than seven times higher than in 2014. South Korea’s won and the Taiwanese dollar weakened, while the ruble rallied amid talk that oil producers may be more flexible about cooperating to cut output. The premium investors demand to own developing-nation debt rather than U.S. Treasuries rose for a second day.