Emerging Stocks Drop Most in 8 Months; Rand Sinks on Japan Risk

Emerging-market stocks tumbled the most in eight months, currencies sank and borrowing costs rose as growing concerns of a nuclear disaster in Japan and conflict in the Middle East spurred investors to sell riskier assets.

The MSCI Emerging Markets Index declined 2.2 percent to 1,092.65, the biggest drop since June 29. The extra yield on emerging-market debt over U.S. Treasuries jumped 7 basis points to 2.74 percentage points, JPMorgan Chase & Co.’s EMBI+ Index showed. Bahrain’s credit risk soared to a 20-month high as Saudi Arabian troops entered the country.