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By Bloomberg

Emerging-market stocks fell toward the lowest level in two years as energy and technology companies declined. Chinese equities in Shanghai climbed after the government stepped up measures to stabilize the market.

PetroChina Co. and Malaysia’s Bumi Armada Bhd. dropped more than 1 percent as a gauge of energy stocks sank to a seven-month low. MediaTek Inc. slumped to a 2012 low in Taipei after UBS AG and HSBC Holdings Plc downgraded the stock. The Shanghai Composite Index rose 1.3 percent. Malaysia’s ringgit and South Korea’s won slid 0.3 percent versus the dollar. India’s rupee rose 0.1 percent before an interest-rate decision.

The MSCI Emerging Markets Index lost 0.3 percent to 888.02 at 12:37 p.m. in Hong Kong, poised for the lowest close since June 25, 2013. Signs of slower economic growth in China and concern over supply gluts have fueled a rout in commodities as oil traded below $50 a barrel in London and copper neared a bear market. Chinese regulators restricted short selling of stocks, freezing out day traders.

“There are no indicators that the rout in commodities will recover anytime soon,” Ang Kok Heng, chief investment officer of Phillip Capital Management Sdn., which manages $630 million, said by phone in Kuala Lumpur. “Excess supply is everywhere from China to Europe. We have been switching from buying commodity companies to manufacturers.”

The developing-nation gauge has declined 7.2 percent this year and trades at 11.2 times projected 12-month earnings, data compiled by Bloomberg show. That compares with a multiple of 16.4 for the MSCI World Index, which has risen 2.9 percent.

Industry Groups

Nine out of 10 industry groups in MSCI’s emerging-markets measure fell. PetroChina headed for the lowest close since Feb. 2014 in Hong Kong. Bumi Armada dropped 1.8 percent. MediaTek slumped 7.9 percent in Taipei, extending yesterday’s 9.9 percent plunge. Taiwan’s Taiex index lost 0.8 percent. Hermes Microvision Inc. sank 9.9 percent after Mizuho Bank Ltd. cut its rating to neutral.

The Shanghai Composite halted a three-day loss. Investors who borrow shares must now wait one day to pay back loans. The short-selling curbs are the government’s latest measures to prop up share prices and prevent market manipulation after an almost $4 trillion selloff. Hong Kong’s Hang Seng China Enterprises Index gained 0.2 percent.

Rating Cut

China Mengniu Dairy Co. dropped 4.8 percent, falling for a fifth day, as Goldman Sachs Group Inc. cut its rating to sell on Monday. Korean Air Lines Co. surged 11 percent in Seoul. The stock was rated new buy at Eugene Investment & Securities Co. South Korea’s Kospi index climbed 0.4 percent.

Maxis Bhd. and Axiata Group Bhd. retreated more than 5 percent in Kuala Lumpur after surging the most since 2009 Monday. Malaysia’s stock index fell 1 percent. The ringgit headed for the weakest close since September 1998. The won slid for a third day in in four.

India’s S&P BSE Sensex index fell 0.5 percent and the rupee gained for a second day. All but three of 42 economists in a Bloomberg survey expect the central bank to hold the benchmark interest rate at 7.25 percent on Tuesday. The others expect a 25 basis-point cut.

Thailand’s SET index slid 0.8 percent, while equity gauges in Indonesia and Vietnam declined at least 0.3 percent.