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By Bloomberg

Emerging-market stocks fell as Chinese equities sank after some banks reduced leverage for trust products investing in shares. Most developing-nation currencies slid after Singapore unexpectedly eased monetary policy.

The Shanghai Composite Index dropped 1.4 percent as Industrial & Commercial Bank of China Ltd. and China Life Insurance Co. lost at least 1.9 percent. Malaysia’s ringgit weakened 0.6 percent versus the dollar before an interest-rate decision today. South Korea’s won fell 0.4 percent. Russia’s ruble slid 1.1 percent as oil retreated.

The MSCI Emerging Markets Index decreased 0.1 percent to 988.92 at 8:36 a.m. in London. China Everbright Bank Co. will lower its leverage ratio for umbrella trusts from next week to reduce funding risks, the Securities Times said yesterday, citing unidentified institutions. Singapore’s central bank joined global policy makers in shoring up growth amid dwindling inflation. The Federal Reserve decides monetary policy today.

“Singapore’s surprise action is feeding speculation other markets could take similar steps,” Jonathan Ravelas, chief market strategist at BDO Unibank Inc., said in Manila.

The developing-nation stock gauge has risen 3.4 percent this year and trades at 11.7 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has fallen 0.2 percent and is valued at a multiple of 16.

Chinese Equities

Six out of 10 industry groups in the emerging-markets index slid, paced by financial shares. The Shanghai Composite declined the most in a week. China Life fell 4.3 percent, while ICBC, the largest Chinese lender, dropped 1.9 percent. Hong Kong’s Hang Seng China Enterprises Index lost 0.6 percent. Investors have ramped up bets on rallying shares by borrowing through structures known as umbrella trusts, which allow for more leverage than brokerage financing.

Samsung Electronics Co. sank 1.6 percent in Seoul before the company reports earnings tomorrow. Samsung Engineering Co. jumped 15 percent after reporting quarterly profit that topped estimates. South Korea’s Kospi index climbed 0.5 percent to the highest close since Dec. 9.

The ringgit weakened the most in a week. Malaysia will keep its benchmark overnight policy rate at 3.25 percent, according to a Bloomberg survey of 19 economists. Thailand’s baht was little changed as the central bank kept the benchmark interest rate unchanged. The won halted a three-day advance.

The ruble weakened for a fourth day in five. Russia’s Micex Index climbed 1.7 percent, poised for the highest close since August 2011.

South Africa’s FTSE/JSE Africa All Shares Index added 0.7 percent to the highest level since Sept. 19. Dubai’s DFM General Index climbed 1 percent, poised to halt a three-day drop. Indian equities retreated 0.3 percent, halting an eight-day rally.