Bill Gray
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Emerging Stocks Drop for 9th Day on China as Ruble Falls

Emerging-market stocks declined for a ninth day after foreign direct investment into China sank to a four-year low and investors weighed the timing of Federal Reserve interest-rate increases. The ruble weakened to a record.

China Petroleum & Chemical Corp. (386), known as Sinopec, slid the most in 11 weeks while the Shanghai Composite Index lost 1.8 percent. The ruble weakened for a seventh day amid falling oil prices. Hyundai Mipo Dockyard (010620) Co. and Samsung Electronics Co. gained in Seoul, spurring a 0.4 percent advance in South Korea’s Kospi index.

The MSCI Emerging Markets Index lost 0.3 percent to 1,052.63 at 3:19 p.m. Hong Kong time. Data today showed inbound investment into China fell 14 percent from a year earlier in August, fueling concerns that the world’s second-largest economy is weakening. The Bloomberg Dollar Spot Index traded near a 14-month high as Fed officials meet to review policy from today.

“The drop in China’s foreign direct investment raised some concerns over its economic outlook,” Jeffrosenberg Tan, a money manager at PT Sinarmas Asset Management, said by phone from Jakarta. “Investors will be watching the Fed meeting closely.”

The developing-nation stock measure is headed for its longest losing streak since November. The gauge has gained 5 percent this year and is valued at 11.1 times estimated 12-month earnings, according to data compiled by Bloomberg. The MSCI World Index has advanced 3.9 percent and trades at a multiple of 14.9.

Electronics Makers

Eight of 10 industries in the emerging-markets index dropped, led by phone and technology companies.

Sinopec fell 2.7 percent, the steepest decline since July 1. SAIC Motor Corp. and Hisense Electric Co. slid more than 4 percent to lead declines for consumer companies reliant on economic growth.

Taiwanese electronics makers slumped amid concern China may raise tariffs on liquid-crystal display panels. Acer Inc., AU Optronics Corp. and Innolux Corp. dropped at least 4.6 percent. The benchmark Taiex Index declined 0.9 percent to its lowest close since Aug. 8.

The ruble weakened as the price of Brent crude slipped 0.4 percent. The Philippine peso lost 0.3 percent against the dollar. South Korea’s won strengthened 0.1 percent, while the Indonesian rupiah increased 0.2 percent.

Hyundai Mipo rose 4.4 percent after Hana Daetoo Securities Co. reiterated its buy recommendation, citing speculation the company is building more vessels at higher margins and that its fuel-efficient ship design will help lift prices. Samsung Electronics rose 0.5 percent to the highest close since Sept. 4.