Emerging stocks fall to lowest in four months

London: Emerging-market stocks fell for a fifth day, dragging the benchmark index to a four-month low, as Greece's struggle to form a new government stoked concern Europe's debt crisis may worsen.

The MSCI Emerging Markets Index dropped 0.8 per cent to 984.90 as in Hong Kong, headed for its lowest close since January 18. The gauge has fallen 8.8 per cent from its March 2 high on concern the European debt crisis and slowing Chinese economy will hamper a global economic recovery. Some investors regard a 10 per cent drop as a so-called correction.

"There is no consensus among the political class or among the general public about what balance they need to strike between austerity, reforms and stimulus," Brian Jackson, a Hong Kong-based senior emerging markets strategist with Royal Bank of Canada, said.