Emerging-Market Stocks Drop With Currencies as Fed Rally Fades
- Magnit leads drop in Russia as retailer’s sales growth slows
- Brazil’s real ends six-day advance as commodity prices slip
Emerging-market stocks fell after reaching the highest valuations in a year and currencies weakened as investors speculated that gains driven by dovish signals from the Federal Reserve were overdone.
Russian stocks retreated the most this month as the country’s biggest retailer reported a slowdown in sales growth. Equity gauges across emerging Europe slid and South African shares dropped to the lowest level in more than two weeks. Markets in China, Hong Kong and Taiwan were closed for holidays. The ruble slipped from the highest level since November after Bank of America Corp. recommended selling the currency before an interest-rate decision on Friday. The real ended a six-day gain and the Ibovespa retreated as lower commodity prices dimmed the outlook for Brazilian exporters.