Emerging-market stocks drop on oil, North Korea missile tests
May 27, 2009, 10:22 am TWN
LONDON -- Emerging-market stocks fell for the first time in three days as energy shares dropped on lower oil prices and concern North Korea may step up missile tests weighed on Asian markets.
The MSCI Emerging Markets Index retreated 1.1 percent to 738.97 at 8:31 a.m. in London, snapping a two-day winning streak. OAO Gazprom, Russia's biggest natural-gas supplier, slumped 1.9 percent to the lowest in seven days as oil fell 2.1 percent to US$60.38 a barrel in New York.
Iljin Display Co., a South Korean micro-display maker, plunged 14 percent, leading declines in the country's benchmark Kospi Index. North Korea fired two short-range missiles off its eastern coast, Yonhap News reported, a day after a nuclear test and similar missile launches drew international condemnation.
The United Nations Security Council held an emergency session and condemned North Korea for the nuclear test, the first in three years.
The extra yield investors demand to own developing nations' bonds instead of U.S. Treasuries rose for the first time in eight days, adding three basis points to 4.69 percentage points, according to JPMorgan Chase & Co.'s EMBI+ Index.