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By Bloomberg

Emerging-market stocks traded at a four-year low, dragged down by Chinese and South Korean shares amid concern about the the health of the world’s No. 2 economy. Copper and oil extended declines, while the dollar slipped against the euro before the release of Federal Reserve minutes.

The MSCI Emerging Markets Index fell 0.6 percent by 12:18 p.m. in Hong Kong. The Shanghai Composite Index dropped 3.1 percent, extending yesterday’s 6.2 percent plunge. Amorepacific Corp., a Korean cosmetics company that counts China as its second-biggest market, slipped 6.2 percent. The stock is down 18 percent since China devalued the yuan last week. Copper traded near a six-year low struck Wednesday, while U.S. crude dropped for the second time in three days.

“Another big drop in Chinese equities is leading to concern over the Chinese economy and a lack of transparency in the global economy,” said Hiroichi Nishi, a manager at SMBC Nikko Securities Inc. in Tokyo. “High-priced stocks may fall because of cheaper metal prices.”

The selloff in Chinese stocks came a week after the country’s surprise yuan devaluation underscored concern about frailties in emerging markets as the Fed moves toward its first rate increase since 2006. Minutes of the Fed’s July meeting are due Wednesday. Bloomberg’s commodity index is at its lowest level since February 2002 amid slowing global demand and rising supplies of crude and basic materials.

About two stocks fell for each that rose on the emerging- markets stock gauge, as Hong Kong’s Hang Seng China Enterprises Index retreated 1.5 percent toward its lowest close since November. The Kospi index in Seoul tumbled 1.8 percent. Benchmark gauges in Taiwan, Indonesia, Vietnam and the Philippines also retreated.

Moving Average

The Shanghai Composite broke below its 200-day moving average, a level that has prompted rebounds on two occasions since the start of July. The yuan was little changed as the People’s Bank of China kept its reference rate steady for a fourth day.

Japan’s Topix index slipped 1.1 percent as the yen strengthened 0.1 percent. Traders are betting the yen is about as weak as it’s going to get this year, cutting expectations for price swings by the most among major currencies this year.

Asian and commodity-linked currencies have borne the brunt of declines since the yuan was ratcheted lower. A gauge of 20 emerging-market currencies has extended its longest streak of weekly losses since 2000.

Ringgit Drops

Malaysia’s ringgit fell 0.7 percent to 4.1085, returning to levels last seen in 1998. The coutnry is paying the price for weak foreign currency holdings and messy politics as the cost to protect its debt soars to near a four-year high. UBS Group AG predicts even more pain ahead.

New Zealand’s dollar slipped 0.4 percent to 65.77 U.S. cents Wednesday, almost erasing Tuesday’s advance. The Australian currency weakened 0.2 percent to 73.26 U.S. cents.

The South Pacific currencies declined toward six-year lows reached earlier this month amid concern China’s woes will force their central banks to reduce interest rates.

Vietnam devalued its dong by 1 percent Wednesday and widened the currency’s trading band to 3 percent either side of the new fixing. It’s the second time the band has been extended in the immediate wake of China’s devaluation.