Emerging market stocks extended the longest losing streak in almost three months as speculation the US Federal Reserve will start raising interest rates sooner weighed on Asian equities and currencies. Turkey's lira rose from a record.
Shares in India, Indonesia and South Korea, shut when data on Friday showed a bigger-than-projected increase in US payrolls, declined at least one per cent. The won weakened 1.2 per cent against the dollar. The lira ended an eight-day rout, while the koruna climbed 0.3 per cent versus the euro after Czech consumer prices unexpectedly rose in February. Industrial & Commercial Bank of China gained 4.2 per cent as regulators said they might allow lenders to enter the brokerage business.
The MSCI Emerging Markets Index decreased for the seventh day as all 10 industry groups declined, led by technology shares. The odds for a US rate increase by September surged to 59 per cent from 49 per cent on Thursday, futures showed, a move that will potentially damp the appeal of riskier assets.
The MSCI gauge lost 1.2 per cent to 960.08 by 1:22 pm in London. A measure tracking 20 developing-country currencies fell 0.2 per cent to a record low.
A 2.9 per cent decline in emerging-market stocks this month has pushed their valuations to 11.6 times projected 12-month earnings, making them the cheapest relative to developed-country shares on the MSCI World Index since 2006.
The emerging-technology index slid 2 per cent on Monday to the lowest level since February 24 as Taiwan Semiconductor Manufacturing Co dropped 2.4 per cent in Taipei.
Shares in India, Indonesia and South Korea, shut when data on Friday showed a bigger-than-projected increase in US payrolls, declined at least one per cent. The won weakened 1.2 per cent against the dollar. The lira ended an eight-day rout, while the koruna climbed 0.3 per cent versus the euro after Czech consumer prices unexpectedly rose in February. Industrial & Commercial Bank of China gained 4.2 per cent as regulators said they might allow lenders to enter the brokerage business.
The MSCI Emerging Markets Index decreased for the seventh day as all 10 industry groups declined, led by technology shares. The odds for a US rate increase by September surged to 59 per cent from 49 per cent on Thursday, futures showed, a move that will potentially damp the appeal of riskier assets.
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"Asia is weaker than Europe mainly because US interest- rate concerns already hit Europe Friday afternoon," Maarten-Jan Bakkum, a developing country strategist at ING Groep NV in The Hague, said by e-mail. "Emerging Asia had to catch up."
The MSCI gauge lost 1.2 per cent to 960.08 by 1:22 pm in London. A measure tracking 20 developing-country currencies fell 0.2 per cent to a record low.
A 2.9 per cent decline in emerging-market stocks this month has pushed their valuations to 11.6 times projected 12-month earnings, making them the cheapest relative to developed-country shares on the MSCI World Index since 2006.
The emerging-technology index slid 2 per cent on Monday to the lowest level since February 24 as Taiwan Semiconductor Manufacturing Co dropped 2.4 per cent in Taipei.