Emerging stocks fallto lowest in five months
Emerging-market stocks dropped to a five-month low as concern deepened that Europe's debt crisis will reduce developing-nation exports and curb demand for riskier assets
Hong Kong: Emerging-market stocks dropped to a five-month low as concern deepened that Europe's debt crisis will reduce developing-nation exports and curb demand for riskier assets.
The MSCI Emerging Markets Index declined 1.6 per cent to 904.39 in Hong Kong, erasing a two-day gain. The gauge is poised for its lowest close since December 20. Benchmark indexes in South Korea, Taiwan, Russia and China fell more than 1 per cent.
"Things will definitely have to slow for exports from Asia to Europe," Lye Thim Loong, who manages $500 million of assets at Libra Invest Bhd., said by phone in Kuala Lumpur. "As we progress toward the second half, I think things may worsen." The MSCI Emerging Markets Index has fallen 1.4 per cent this year, while the MSCI World Index of developed nations added 1.1 per cent.
