Emerging-market stocks tumbled the most in 10 months, led by Russian and South African shares, as exporters slumped after weaker China manufacturing data bolstered concern the global economy is faltering.
The forint rose to the strongest in three months, spurring Goldman Sachs Group Inc. to close its trade recommendation to sell Hungary’s currency against the euro at a loss after the economy emerged from recession.
Russia abandoned the sale of $1.1 billion of ruble bonds, the first cancellation of an auction since October, after yields surged on concern policy makers will refuse to lower interest rates to bolster growth.
Polish banks and pension funds are keeping borrowing costs elevated for companies by holding their debt to maturity and stifling the development of the corporate bond market, Oaktree Capital Management LLC said.
The Federal Reserve is likely to maintain monetary stimulus, Samarjit Shankar, a Boston-based managing director and senior currency strategist at the Bank of New York Mellon Corp., said in an interview in Singapore.