Azernews.Az

By Bloomberg

Emerging-market stocks fell for a second day as technology companies tumbled on signs China’s slowdown is deepening. The Turkish lira weakened to a record, while Russia’s ruble gained with oil.

China’s Tencent Holdings Ltd. and South Korea’s Samsung Electronics Co. retreated at least 1.9 percent. An index of developing-nation currencies fell 0.3 percent as the lira slid 0.6 percent and the South African rand dropped 1.1 percent. The ruble added 0.5 percent as Brent crude jumped 1.3 percent. OAO Mobile TeleSystems climbed to a six-month high in Moscow after increasing its dividend.

The MSCI Emerging Markets Index slipped 0.2 percent to 1,035.16 at 1:10 p.m. in London. China’s economy expanded at the weakest pace since 2009 last quarter, while March industrial production growth trailed all 40 estimates in a Bloomberg survey. The index rallied for 11 days through April 13, the longest run of gains in a decade.

“We see a weak backdrop for emerging-market risk sentiment as weak Chinese data are dragging” stocks and currencies lower, Bernd Berg, an emerging-market strategist at Societe Generale SA in London, said by e-mail. “The rand is under selling pressure after yesterday’s relief rally. The lira is entering into free- fall territory.”

Turkey’s currency slid for a fifth day, as a lack of clarity on the direction of economic policies following June elections added to pressure from the prospect for higher U.S. interest rates. The rand declined after climbing 1.1 percent yesterday, the most in almost two weeks.

The premium investors demand to own emerging-market debt over U.S. Treasuries fell one basis point to 347 basis points, according to JPMorgan Chase & Co. indexes.

Tech Drop

The developing-nation equities gauge has risen 8.2 percent this year and trades at 12.4 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has gained 4 percent in 2015 and is valued at a multiple of 17.

Eight out of 10 industry groups fell, as a technology gauge lost 1.3 percent. Tencent slid to a one-week low. Samsung sank the most since March 26. Taiwan’s Taiex Index declined 1.1 percent as MediaTek Inc. dropped 4 percent and Hon Hai Precision Industry Co. lost 1.8 percent.

Cnooc Ltd. posted its longest rally on record in Hong Kong, pacing a 1.5 percent gain in developing-nation energy shares. The Hang Seng China Enterprises gauge rose for the ninth time in 10 days as Industrial & Commercial Bank of China Ltd. advanced 4.9 percent. The Shanghai Composite declined 1.2 percent.

China’s economy expanded 7 percent in the first quarter from a year earlier, in line with the government’s full-year target. The nation’s industrial production grew 5.6 percent in March, missing the lowest forecast in Bloomberg’s survey of 40 economists, data Wednesday showed.

Alibaba Surge

Alibaba Health Information Technology Ltd., a subsidiary of China’s biggest e-commerce operator, surged 81 percent to a record in Hong Kong on plans to buy an affiliate’s online pharmacy business in a $2.5 billion deal.

The ruble strengthened for a third day and Russia’s Micex Index added 0.9 percent. Mobile TeleSystems rose 5.2 percent in Moscow as Russia’s largest mobile-phone operator said it will pay its biggest dividends on record, helping extend a rally this year that’s surpassed its industry peers.

Saudi Arabia’s Tadawul All Share Index advanced 2.1 percent and Dubai’s DFM General Index surged 3 percent, the most since Feb. 1. Dubai Islamic Bank PJSC rallied 5.3 percent, its biggest gain since Dec. 21, after first-quarter profit grew 34 percent from a year earlier.