China’s death toll from a new strain of bird flu rose to six people as Shanghai began slaughtering birds at a local market and concerns of an outbreak sparked the biggest drop in Hong Kong stocks in more than eight months.
Emerging stocks declined to a four- month low as U.S. jobs data missed forecasts and the threat of a bird flu epidemic sent Chinese airlines tumbling. The MSCI BRIC Index dropped 10 percent from this year’s peak.
European aviation stocks declined, following a drop among Asian carriers, on concern an outbreak of the bird-flu virus in China will clip travel and hurt demand already unsettled by rising military tensions with North Korea.
Cathay Pacific Airways Ltd., the Hong Kong carrier expecting a record annual profit, will increase passenger capacity 11 percent next year as the economic pickup stokes demand for premium-class travel.