)
Emerging-market stocks fell for a 12th day in the longest slump since 1990, as concerns deepened that higher US interest rates will curb demand for riskier assets.
Chinese shares sank from a seven-year high before MSCI Inc decides on their inclusion in global benchmarks. Financial shares led Czech stocks lower for the third day. The rouble fell for the first time in three days. Turkish equities rebounded from a three-month low, and Hungary's forint strengthened for the first time in three days after consumer prices rose.
The MSCI Emerging Markets Index slid 0.7 per cent to 970.5 at 11:07 am in London, taking its loss since May 22 to 6.5 per cent. Stocks have slumped as a string of data signaled that the US economy may be able to withstand its first interest-rate increase since 2006.
"There is fear of an early first rate hike by the Federal Reserve as a consequence of stronger US data," Michael Ganske, the head of emerging markets at Rogge Global Partners in London, said by e-mail.
The MSCI developing-nation measure has risen 1.5 per cent this year and trades at 11.8 times 12-month projected earnings, data compiled by Bloomberg show. The MSCI World Index has climbed 2.3 per cent in 2015 and is valued at a multiple of 16.4.
Biggest losers
Nine out of 10 industry groups in MSCI's emerging-markets gauge fell on Tuesday, led by industrial and technology shares. CRRC Corp, formed by merging rail companies CSR Corp and China CNR Corp, slumped 13 per cent on its second day of trading in Hong Kong. That was the steepest drop on the gauge.
Turkish stocks rebounded from the steepest slump since December 2013, while the lira appreciated 0.1 per cent after a loss of 3.3 per cent on Monday. Turkish financial markets have come under pressure after voters denied the ruling Justice and Development Party a majority government for the first time since 2002.
The forint rose 0.4 per cent after data showed Hungarian consumer prices in May climbed for the first time in nine months, potentially narrowing the central bank's room to further cut interest rates from a record low.
AngloGold Ashanti Ltd, the world's third-largest gold producer, rallied 12 per cent in Johannesburg after the sale of its Cripple Creek & Victor mine to Newmont Mining Corp ended speculation it would have to issue shares.
Meanwhile, the FTSE/JSE Africa All Share Index was poised for the lowest close since January, losing 0.6 per cent. In the Arab world, the benchmark Saudi Tadawul All Share Index decreased 0.8 per cent in the fifth day of losses.
Weaker demand
The Hang Seng China Enterprises Index fell 1.8 per cent to a three-week low. The Shanghai Composite Index retreated 0.4 per cent after inflation data signaled weaker demand and traders weighed whether MSCI will add mainland securities to its global indexes. The index provider decides on Tuesday in New York.
The Jakarta Composite Index sank 2.3 per cent, while Philippine equities decreased 2.2 per cent.
The premium investors demand to hold emerging-market debt over US Treasuries widened two basis points to 343 basis points, according to JPMorgan Chase & Co indexes.
