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By Bloomberg

Emerging-market stocks fell for the first time in four days as utilities tumbled and the European Central limited Greece’s access to financing. Chinese equities rose after the country cut lenders’ reserve-requirement ratios.

Huadian Power International Corp. tumbled 8.6 percent in Hong Kong to lead Chinese utilities lower after industry research institute ICIS said China may cut on-grid power prices. PetroChina Co. paced losses for energy companies after oil tumbled 8.7 percent yesterday. A gauge of Hong Kong-traded Chinese shares rose 1.1 percent as financial stocks rallied. South Korea’s won weakened 0.6 percent versus the dollar.

The MSCI Emerging Markets Index sank 0.3 percent to 978.05 at 1:38 p.m in Hong Kong. The ECB said it will no longer accept junk-rated Greek collateral, citing doubt over the new government’s commitment to previous reform pledges. China’s central bank said it’s lowering the reserve ratio by 50 basis points, joining more than a dozen global counterparts in easing monetary policy this year.

“The ECB move on Greece has probably put some investors on the sidelines,” Dang Tran Hai Dang, head of equity research at Maritime Bank Securities, said from Hanoi. “China’s decision on the reserve ratio will help boost market sentiment in the short term, but for the long term, it’s hard to say.”

Greek lenders, who since 2010 had been able to access funds from the ECB against junk-rated collateral, must now apply for funding from their national central bank at higher rates.

Stock Valuations

The developing-nation gauge has gained 2.3 percent this year and trades at 11.7 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has risen 0.3 percent and is valued at a multiple of 16.1.

Eight out of 10 industry groups in the emerging-markets measure slid, led by utility and energy stocks. Huadian Power slumped the most since June 2013, while Datang International Power Generation Co. tumbled 7.8 percent. China may cut on-grid power prices by as much as 0.03 yuan/Kwh, ICIS reported, citing an unidentified person with a power company.

PetroChina and CNOOC Ltd. dropped at least 1.8 percent in Hong Kong. Oil traded below $50 a barrel amid the most volatility since April 2009 as U.S. crude stockpiles climbed to the highest level in more than three decades.

Hong Kong’s Hang Seng China Enterprises Index advanced to a one-week high as Bank of China Ltd. and Industrial & Commercial Bank of China Ltd rose at least 2.3 percent. The Shanghai Composite Index added 1.1 percent.

Reserve Ratio

The required reserve ratio reduction is the first across- the-board cut since May 2012. It will inject as much as 600 billion yuan ($96 billion) into the banking system, Australia & New Zealand Banking Group Ltd. economists estimate.

Vietnam’s stock index added 1 percent, the most since Jan. 23. The Jakarta Composite Index lost 0.8 percent. Data today showed Indonesia’s economy grew in 2014 at the weakest pace in at least five years.

South Korea’s Kospi index slid 0.6 percent, the most since Jan. 16, while the won halted a two-day advance. Shinhan Financial Group Co. tumbled 4.9 percent in Seoul after reporting an unexpected drop in quarterly profit.

Equity gauges in Thailand and the Philippines fell at least 0.4 percent. The ringgit pared losses after Malaysia’s December trade figures beat estimates.