Emerging-market stocks fell, pushing the benchmark index to its biggest weekly drop in two months, after Kia Motors Corporation reported a slump in earnings.
Bloomberg reported on Friday that Samsung, the maker of mobile phones and televisions, that has the biggest weighting on the MSCI Emerging Markets Index, dropped to an eight-week low in Seoul, while Kia Motors sank the most since November 5.
The MSCI Emerging Markets measure lost 0.4 per cent to 1,067.89 by 10:40 a.m. in New York, as an exchange-traded fund of developing-nation stocks headed for the lowest close in four weeks.
The index has dropped by 1.2 per cent this week, the most since November 16. Samsung said the strengthening won may cut operating profit by at least $2.8bn this year. Kia Motors reported a 51 per cent decrease in fourth- quarter operating profit as the stronger Korean currency eroded the value of its exports.
“For Asian companies, the currency issue is the biggest risk factor in the foreseeable future,” Laurentia Amica Darmawan, who helps manage about $530m at PT First State Investments Indonesia, said by phone in Jakarta.
“It will go on until we have clarity on how long the monetary easing from various countries will last.”
South Korea’s Kospi index lost 0.9 per cent, the most among major benchmark gauges in Asia.
The biggest developing nations risk overturning the achievements of the past decade by increasing the state’s role in the economy, according to Nouriel Roubini.
Brazil, Russia, India and China have been moving away from market economies recently, Roubini, dubbed Dr. Doom for predicting hard times before the global financial crisis began in 2008, said.