Jittery emerging-market stocks on longest slump in 24 years

BEIJING: 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 decides on their inclusion in global benchmarks. Financial shares led Czech stocks lower for the third day. The ruble appreciated for the third day. 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 0.5% to 972.66 at 2:38 pm in London, taking its loss since May 22 to 6.3%. 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 firstrate 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 email. The MSCI developing-nation measure has risen 1.7% this year and trades at 11.8 times 12-month projected earnings, data compiled by Bloomberg show.

The MSCI World Index has climbed 2.5% in 2015 and is valued at a multiple of 16.4. Seven 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% on its second day of trading in Hong Kong.

That was the steepest drop on the gauge. Turkish stocks rebounded from the biggest slump since December 2013, while the lira appreciated 0.5% after a loss of 3.3% on Monday.