Emerging stocks fall on rate concerns

Emerging-market stocks fell yesterday, sending the benchmark index to a two-week low, on growing concern that central banks will increase interest rates even as the global economic expansion slows. The MSCI Emerging Markets Index dropped 0.4 per cent to 1,140.48, set for the lowest close since May 26. China's Shanghai Composite Index lost 1.7 per cent, while South Korea's Kospi declined 0.6 per cent. Poland's WIG20 Index dropped 0.8 per cent as PZU SA, Poland's biggest insurer, fell 4 per cent in Warsaw. The Shanghai Composite sank the most among equity gauges in the world's 50 biggest markets and closed at the lowest level since January on speculation the central bank will keep tightening monetary policy. Central banks in Brazil and Poland lifted interest rates yesterday and the Bank of Korea will weigh a rate increase today. From / Gulf News