Emerging-market stocks fell for a fifth day as foreign direct investment into China unexpectedly dropped and investors awaited a Federal Reserve decision on monetary policy this week. Australia’s dollar weakened for a third day, while palladium rose.
The MSCI Emerging Markets Index declined 0.1 percent at 10:51 a.m. in Hong Kong, heading for the longest losing streak in five months, while a gauge of Asian shares outside Japan lost 0.3 percent. Standard & Poor’s 500 Index futures rose 0.2 percent. South Korea’s won and Indonesia’s rupiah fell to the lowest levels in more than a week. The Aussie dropped 0.4 percent after central bank meeting minutes, while West Texas Intermediate crude fell 0.3 percent. Palladium rose 0.8 percent.
China’s non-financial FDI declined 6.7 percent from a year earlier in May, versus estimates for a 3.2 percent gain. Fed policy makers start their two-day meeting today, with data yesterday showing gains in factory output and builder sentiment before inflation figures due today. U.S. President Barack Obama is considering airstrikes against Islamic militants in Iraq, while Russia cut gas supplies to Ukraine yesterday amid pressure from separatists in the nation’s east.
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