Emerging Stocks Fall as China Stimulus Outlook Damps Risk Demand
- Chinese state news agency signals more prudent monetary policy
- Lira rises for third day as Turkey reduces borrowing costs
The U.S.-Emerging Market Divergence
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Developing-nation stocks fell from a five-month high as signs that China may moderate stimulus measures reduced demand for riskier assets.
Chinese shares traded in Hong Kong dropped for a third time in four days as a commentary published by state news agency said prudence will feature in monetary policy more prominently than last year. The Ibovespa fell from a 10-month high after data showed Brazilian inflation accelerated more than forecast and unemployment increased. The rupee climbed the most in a month after India’s trade deficit narrowed to a five-year low. The South African rand advanced for a third day as inflation slowed. Turkey’s lira strengthened as the central bank cut borrowing costs.