Emerging Stocks Drop First Day in Five on Spain Debt, China

Emerging-market stocks fell for the first time in five days after China damped speculation of a stimulus package while Spanish and Italian borrowing costs rose, sending commodity shares lower.

The MSCI Emerging Markets Index slid 1.5 percent to 907.88 at the close in New York, headed for a 12 percent plunge this month, the most since September. Brazil’s Bovespa fell 1.5 percent to a seven-month low as HRT Participacoes em Petroleo SA declined 12 percent in Sao Paulo. Russia’s Micex Index dropped, with OAO Lukoil falling as crude oil retreated.