Emerging Stocks Fall as Commodities Push Russia to Bear Market
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Emerging-market stocks fell as a plunge in commodities sent Russian and Brazilian equities tumbling and investors speculated China’s cut in banks’ reserve ratios won’t be enough to stem the economic slowdown.
The MSCI Emerging Markets Index dropped 2 percent to 952 by 4:31 p.m. in New York, the lowest since Jan. 16. Russia’s dollar-denominated RTS Index declined, pushing the gauge into a bear market, while the Micex index fell to a seven-month low. Brazil’s Bovespa retreated 3.2 percent, the most since Sept. 22. Brookfield Incorporacoes SA, the nation’s fourth-largest homebuilder by revenue, was the leading decliner in Brazil and on the emerging nations’ gauge.