Emerging-market stocks fell to a five-month low on Wednesday as weaker-than-expected manufacturing data from China to the U.S. spurred concern global growth will falter. The ruble strengthened as Russia scrapped a bond auction.
Lenovo Group Ltd. sank 16 percent after at least five brokerages cut their ratings on the world’s largest maker of personal computers.
The Hang Seng China Enterprises Index tumbled 3.1 percent in the first trading day since data showed an official gauge of factory output fell to a six-month low. South African stocks slid for an eighth day, while the rand strengthened 1.2 percent versus the dollar. The ruble climbed 0.4 percent against the dollar after Russia canceled a debt sale for the second consecutive week.
The MSCI Emerging Markets Index declined 1.1 percent to 916.44, the lowest level since Aug. 29, at 12:15 p.m. in London. The gauge is off to the worst start of a year on record amid an equities rout that’s erased about $2.9 trillion from global stocks in 2014 due to concerns Chinese growth is slowing, and as the Federal Reserve trimmed monetary stimulus.
Data showing U.S. factories expanded at the slowest pace in eight months in January were “disappointing,”Martial Godet, the head of emerging-market equity and derivatives strategy at BNP Paribas SA in Paris, said. “Markets now price a somewhat weaker level of growth in the U.S. and EM.”
A measure of U.S. orders declined by the most since December 1980 as a number of companies said adverse weather slowed business, data showed yesterday.
More than four stocks declined for each that rose on MSCI’s developing-nation gauge today. Indexes tracking technology and industrial companies retreated at least 1.5 percent. Naspers Ltd., Africa’s largest media company, decreased 2.6 percent in Johannesburg, pulling the FTSE/JSE Africa All Shares Index down 1.5 percent. The index has fallen 5.8 percent in the past eight days, the longest stretch of losses since 2004.
Measures in Thailand, Malaysia, South Korea and the Philippines slumped at least 1.2 percent, while markets in mainland China, Taiwan and Vietnam were shut for holidays.
In emerging Europe, Romania’s gauge lost 1.1 percent and Poland’s WIG 30 Index lost 0.9 percent. Russia’s Micex Index fell for a third day, dropping 0.6 percent. Energy company OAO Gazprom paced the retreat, losing 1.2 percent.
