Most emerging stocks decline on lowered global growth forecast

China, India

The Shanghai Composite Index fell 1.7 percent, its lowest close since March 2009. Suning Appliance Co., China’s biggest electronics retailer by market value, slid the most on record in Shanghai after estimating profit dropped as much as 30 percent in the first six months of the year. India’s Sensex dropped 0.6 percent.

China’s central bank may cut interest rates by as much as one percentage point in the coming year to spur lending, the swap market signals. China’s State Council may this week give details of easing measures to support growth after provincial visits by Wen and Vice Premier Li Keqiang, Nomura Holdings Inc. said in a note today.

State Bank of India, the country’s largest lender, advanced 1 percent on speculation of a rate cut. Reserve Bank of India Governor Duvvuri Subbarao announces his next rate decision on July 31, following a 0.5 percentage-point reduction in April.

ZTE, BYD

ZTE Corp., a Chinese telecommunications equipment maker, dropped 16 percent, the most since October 2008, after the company said first-half net income may be between 154 million yuan ($24 million) and 308 million yuan, sliding from 769.3 million yuan a year earlier.

BYD Co., the automaker backed by investor Warren Buffett, tumbled 5.9 percent in Hong Kong. China’s automobile dealers will increase incentives and discounts as they struggle with a worsening glut in the world’s biggest vehicle market, according to Cheng Xiaodong, head of a unit that monitors auto prices at the National Development and Reform Commission.

The extra yield investors demand to own emerging-market debt over U.S. Treasuries fell one basis point, or 0.01 percentage point, to 357, according to JPMorgan Chase & Co.’s EMBI Global Index.

Bloomberg News

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