Emerging stocks downEmerging-market stocks dropped the most in three weeks as Tencent Holdings led a slump in technology companies from a record. Russia’s Micex Index slid after the United States threatened tougher sanctions over Ukraine.
The MSCI Emerging Markets Index declined 0.9 percent to 1,012.19 at 11:23 a.m. in New York, snapping a five-day advance. Tencent, Asia’s biggest Internet company, tumbled 6.7 percent in Hong Kong. The Micex capped the worst week in a month, while the ruble dropped after Russia’s Finance Ministry said it will restart buying foreign currencies.
Technology companies in the measure for developing-nation stocks dropped after reaching the highest level since at least 1995, according to data compiled by Bloomberg. The Nasdaq Composite Index declined the most since 2011 yesterday, triggering a selloff in technology stocks across Asia. U.S. Treasury Secretary Jacob J. Lew delivered a warning yesterday of more sanctions in talks with his Russian counterpart, Anton Siluanov, after Russia’s incursion into Ukraine.
“You had some extreme valuations in certain sectors, primarily technology,” Timothy Ghriskey, chief investment officer at New York-based Solaris Asset Management, which helps manage about $1.5 billion in assets, said by phone. “The U.S. discussing more sanctions for the Ukraine certainly is a factor, too. These geopolitical overhangs could also be influencing markets.”
Chinese stocks dropped, sending mainland companies in Hong Kong to the biggest decline in two months, as technology shares sank on valuation concerns. Tencent posted the largest drop since November 2012. The stock has tumbled 17 percent from its all-time high on March 6.