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By Bloomberg

Emerging-market stocks fell for the first time in three days and currencies weakened as concern over Greece’s debt situation sapped demand for riskier assets.

Indian shares slid 1.6 percent after posting their biggest two-day gain in a year. Hong Kong’s Hang Seng China Enterprises Index lost 1 percent as Bank of China Ltd. sank 1.7 percent. Compal Electronics Inc. tumbled the most since 2011 in Taipei after profit missed estimates. Malaysia’s ringgit dropped to a two-week low versus the dollar and India’s rupee declined 0.5 percent. The Thai baht weakened to the lowest level since 2009.

The MSCI Emerging Markets Index fell 0.5 percent to 1,030.74 at 1:20 p.m. in Hong Kong. Greece has readied a repayment to the International Monetary Fund, officials said, as the European Central Bank prepared to reassess emergency liquidity lines keeping the Greek banking system in business on Wednesday. U.S. policy makers could raise interest rates at any meeting, depending on economic data, Federal Reserve Bank of San Francisco President John Williams reiterated on CNBC Monday.

“There are quite a number of uncertainties around the region, and markets are reacting to that,” Manpreet Singh Gill, a senior strategist at Standard Chartered Bank, said in a Bloomberg TV interview. “We think volatility is likely to trend higher over time.”

Stock Valuations

The developing-nation index has gained 7.8 percent this year and trades at 12.4 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has risen 4.6 percent in 2015 and is valued at a multiple of 16.8.

All 10 industry groups fell as health-care companies led losses. India’s S&P BSE Sensex index retreated 1.6 percent after gaining 3.4 percent in the previous two days and before the release of monthly retail inflation data. ICICI Bank Ltd. dropped 2.9 percent to lead lenders lower.

Bank of China slid from a one-week high. A gauge of mainland stocks listed in Hong Kong halted a two-day advance as investors weighed the impact of more monetary easing against a weakening economy. China will release reports on industrial output and retail sales on Wednesday. The Shanghai Composite climbed 0.7 percent, extending Monday’s 3 percent rally.

China’s central bank cut interest rates for the third time in six months over the weekend after export and inflation data signaled weaker demand.

Compal tumbled 7 percent after its disappointing first- quarter earnings prompted analysts including Daiwa Securities Group Inc. to downgrade the stock. Taiwan’s Taiex index climbed 0.2 percent, poised to end a five-day drop.

Biggest Gainer

Paradise Co. surged 15 percent in Seoul, the biggest gain in the MSCI Emerging Markets Index, after saying it will buy the casino businesses in Busan held by its affiliate.

Thailand’s SET Index declined 0.6 percent, set for the lowest close since Jan. 6. The baht weakened 0.3 percent to the lowest level since September 2009 as global funds reduced holdings of the nation’s bonds.

The ringgit sank 0.6 percent as a combination of dollar strength and falling oil prices damped demand for the currency. Brent crude declined for the fourth day, renewing concern that government revenue will deteriorate for the oil-exporting nation.

India’s rupee slid for the first time in three days, while currencies in South Korea, the Philippines and Indonesia dropped 0.4 percent.