(Bloomberg) -- Most emerging-market stocks fell as Brazils Ibovespa sank a day after entering a bear market, while investors weighed prospects for global stimulus measures.
Brazils stock index was poised for the lowest close since August 2011 as papermaker Klabin SA tumbled on plans to sell securities. Egypts shares slid into a bear market after MSCI Inc. said it may review the nations emerging-market status. The Borsa Istanbul Stock Exchange National 100 Index snapped a two- day plunge, led by banks. Indonesias stocks gained as PT Unilever Indonesia ended a four-day tumble.
The MSCI Emerging Markets Index lost 0.1 percent to 953.94 at 2:53 p.m. in New York, as 337 stocks fell, while 176 rose. The gauge slid 9 percent since May 22, when Federal Reserve Chairman Ben S. Bernanke said the central bank could pare its bond purchase program if employment showed improvement.
The tapering in stimulus is bound to happen at some point, Nick Robinson, who helps manage $322 billion at Aberdeen Asset Management, said in an interview in New York. Its less liquidity going around in the market. That has had some impact on markets.
Commodity shares led losses among 10 groups in a measure of developing-nation stocks. The broad gauge extended this years drop to 9.6 percent, compared with a 8.9 percent jump in the MSCI World Index.
The iShares MSCI Emerging Markets Index exchange-traded fund slid 0.8 percent to $39.08. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, rose 4.5 percent to 27.46.
Brazils Ibovespa fell for a fourth day amid concern that government measures to spur growth and tame inflation wont be enough to rekindle Brazils economic recovery. Papermaker Klabin tumbled 8.6 percent. OGX Petroleo & Gas Participacoes SA declined for a second day.
Mexicos IPC Index slumped 1 percent as Grupo Financiero Banorte SAB, the nations third-largest bank, tumbled on plans to raise as much as $3 billion in the markets biggest stock offering of the year as the company expands through acquisitions.
Turkish shares gained after plunging 4.2 percent over the previous two days. Akbank TAS and Turkiye Garanti Bankasi AS rose at least 1.9 percent. The nations central bank Governor Erdem Basci stepped in to shore up the lira amid anti-government protests, seeking to curb a selloff spurred by concern policy makers are preparing to scale back stimulus.
The Jakarta Composite Index jumped 1.9 percent, rebounding from its lowest level since Feb. 19 and paring its decline from a May 20 peak to 9.9 percent. PT Astra International jumped 7.5 percent and PT Unilever Indonesia soared 9.5 percent.
Egypts EGX 30 Index tumbled 5.2 percent, the most since November. The measure, the worst performer today among 94 indexes tracked by Bloomberg, has fallen 23 percent since a Sept. 26 peak. MSCI said it may be forced to consider excluding Egypt from its emerging-market indexes if a foreign currency shortage were to worsen and result in the inability of international investors to repatriate their funds.
Greece became the first developed nation to be cut to emerging-market status by MSCI after the local stock index plunged 83 percent since 2007. Qatar and the United Arab Emirates were raised to emerging markets, while Morocco was cut to a frontier market. New York-based MSCI kept South Korea and Taiwan as emerging markets, and placed Chinese shares traded on local exchanges on review for inclusion in the emerging category, according to a statement yesterday.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries fell nine basis points, or 0.09 percentage point, to 327 basis points, according to JPMorgan Chase & Co.s EMBI Global Diversified Index.
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