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Cnooc Ltd. fell to a five-year low in Hong Kong while SapuraKencana Petroleum Bhd. plunged 14 percent to lead Malaysian stocks to the biggest drop since January 2013. The ringgit weakened 1.6 percent versus the dollar. South Korea’s won declined 0.6 percent after a report showed the nation’s exports unexpectedly contracted. AirAsia Bhd. and Korean Airlines Co. rallied at least 6.5 percent.

The MSCI Emerging Markets Index sank 1 percent to 994.71 at 1:26 p.m. in Hong Kong, on course for its steepest drop since Oct. 16. West Texas Intermediate fell below $65 a barrel amid speculation that prices need to drop further before OPEC’s decision to maintain production slows U.S. shale supply. A Chinese manufacturing gauge fell as factory shutdowns aggravated a pullback in the world’s second-largest economy.

“A sustained period of oil at current prices is not priced in equity markets,” Mixo Das, an Asia ex-Japan equity strategist at Nomura Holdings Inc. in Singapore, wrote by e- mail. “Negative impacts are most felt in oil and gas exploration and production, but also trickle down to oil capex, chemical margins and oil substitutes like coal, gas and, to some extent, palm oil.”

Stock Valuation

The MSCI developing-nation gauge has fallen 0.9 percent this year and trades at 11.2-times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has advanced 4.6 percent and is valued at a multiple of 15.5.

All 10 industry groups in the emerging-markets index fell as a gauge of energy shares lost 1.9 percent. Cnooc, China’s biggest offshore oil and gas producer, sank 3.9 percent. SapuraKencana tumbled the most on record, while rival Dialog Group Bhd. plunged 17 percent in Kuala Lumpur, the most in the developing-nation index. The FTSE Bursa Malaysia KLCI Index slumped 2.3 percent, the worst performer in Asia.

The ringgit led losses in emerging markets on concern a protracted slide in crude will erode the oil-exporting nation’s revenue. The won weakened for a second day as the benchmark Kospi index of shares fell 0.8 percent. Indonesia’s rupiah depreciated 0.5 percent.

Democracy Protests

The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong decreased 1.2 percent, led by a 3.6 percent loss in PetroChina Co. Jiangxi Copper Co. dropped 4.5 percent as copper slid to a four-year low. In Hong Kong, police began clearing roads leading to government offices after a night of tussles with pro-democracy protesters who are calling for free elections in 2017.

China’s Purchasing Managers’ Index fell to an eight-month low of 50.3 in November, compared with the 50.5 median estimate of analysts in a Bloomberg survey and October’s 50.8. Readings above 50 indicate expansion.

The Shanghai Composite Index rose for an eighth day, adding 0.9 percent, poised for the highest level since July 2011. Ping An Insurance (Group) Co., China’s second-biggest insurer, gained 4.2 percent after it said it will raise HK$36.8 billion ($4.75 billion) in a Hong Kong share sale.

China Southern Airlines Co. and Air China Ltd. both jumped at least 9.9 percent in Shanghai on optimism lower oil prices will help carriers to cut their biggest expense. AirAsia surged the most since February 2013 in Kuala Lumpur. Korean Air rallied to the highest level since April 2013 in Seoul and Eva Airways Corp. added 6.5 percent in Taipei.

Vietnam’s VN Index climbed 0.7 percent while Indian equities added 0.2 percent.