Emerging-market stocks fell a third day, set for the longest drop in a month, as Chinese industrial output trailed estimates and India’s trade deficit widened.
Bloomberg reported on Monday, that Brazilian homebuilder Gafisa SA led losses on the Ibovespa.
Cnooc Limited, China’s largest offshore energy explorer, slid by 2.4 per cent in Hong Kong, while Tata Steel Limited, India’s biggest maker of the alloy, had the biggest decline since March.
OAO Mechel sank by 4.7 per cent in Moscow as first-quarter coal production fell. Brazilian shares fell a fourth day as Gafisa sank after reporting a quarterly loss. Pakistan’s shares climbed to a record after this weekend’s election.
The MSCI Emerging Markets Index lost 0.8 per cent to 1,042.42 by 2:05 p.m. in New York. Stocks retreated as data showed Chinese production grew by 9.3 per cent in April from a year earlier, missing estimates, while fixed-asset investment unexpectedly decelerated.
India’s trade deficit widened in April to $17.8bn from $10.31bn in March. The yen slid beyond 102 per dollar for the first time since 2008.
“There has been a deceleration of economic activity in China,” Philip Orlando, the New York-based chief equity strategist at Federated Investors Inc., said in a telephone interview today. His firm manages about $377bn.