Nov. 1 (Bloomberg) -- Emerging-market stocks fell, wiping out a weekly gain, as Indonesia’s surprise trade shortfall outweighed data showing China’s manufacturing strengthened. Turkey’s lira was set for the longest slide since 2002.
The MSCI Emerging Markets Index retreated 0.7 percent to 1,027.48 at 11:45 a.m. in New York. Indonesia’s rupiah fell, completing its worst week since August, as data showed the nation’s trade balance unexpectedly swung back to a deficit. The lira paced losses in 23 out of 24 developing-nation currencies tracked by Bloomberg as Turkey’s central bank cut the amount of liquidity it gives to lenders in auctions of repurchase agreements. Poly Real Estate Group Co. drove gains in China on bets policy makers will ease property curbs.
Stocks joined a global slump amid bets the Federal Reserve will start tapering stimulus that has buoyed emerging markets sooner than previously expected after better-than-estimated economic data. Manufacturing strengthened from the U.S. to China and South Korea last month in a sign that expansion may pick up this quarter. Indonesia’s exports slid for an 18th month and concern grew the nation’s current-account deficit will linger.
“Among emerging markets, the higher current-account deficit countries remain the most vulnerable to any tapering noise,” Simon Quijano-Evans, head of emerging-markets research at Commerzbank AG in London, said by e-mail.
Nine out of 10 groups in the MSCI Emerging Markets Index retreated today, led by energy and telephone shares. The broad measure trades at 10.5 times projected earnings, compared with the valuation of 14.2 for the MSCI World Index.
The iShares MSCI Emerging Markets Index exchange-traded fund declined 0.2 percent to $42.37. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, advanced 1 percent to 22.04.
The premium investors demand to own emerging-market debt over U.S. Treasuries fell four basis points, or 0.04 percentage point, to 311 basis points, according to JPMorgan Chase & Co.
--Editors: Rita Nazareth, Zahra Hankir