Emerging Stocks Drop to Two-Week Low on China Exports, Europe

Emerging-market stocks fell, driving the benchmark index to a two-week low, after China’s exports grew at the weakest pace in two years and Italian bond yields traded near 7 percent, fueling concern Europe’s debt crisis is worsening.

The MSCI Emerging Markets Index sank for a second day, losing 2.7 percent to 953.95 at 4:56 p.m. in New York, the lowest since Oct. 24. The gauge pared declines of as much as 3.2 percent after the European Central Bank was said to have bought Italian debt. Brazil’s Bovespa fell 0.4 percent as speculation faded that Brazil’s central bank will step up the pace of interest-rate cuts. South Korea’s Kospi Index fell 4.9 percent. The Hong Kong-traded Hang Seng China Enterprises Index sank 5.7 percent after Chinese export growth slowed in October.