“Most emerging-market stocks fell, pushing the benchmark index from an eight-month high, as signs of an impasse in U.S. budget negotiations dragged down technology companies.
Taiwan Semiconductor Manufacturing Co. (2330), which got 59 percent of its revenue from America in 2011, slid to a three- week low. OAO Novatek, Russia’s non-state gas producer, headed for the highest close since Oct. 24 after a report that Russian ministries support its bid to end OAO Gazprom’s liquefied natural gas export monopoly. Adani Enterprises Ltd. (ADE), India’s biggest coal importer, tumbled 7.1 percent in Mumbai, the steepest decline in the developing-nation gauge, ahead of a share sale by the company’s founders tomorrow.
The MSCI Emerging Markets Index (MXEF) fell less than 1 percent to 1,052.56 as of 12:30 p.m. in London, snapping a two-day advance. Officials from U.S. President Barack Obama’s administration told leaders of business and financial services groups that negotiations with House Speaker John Boehner have deteriorated in the past 24 hours, a person familiar with the meeting said. Obama and Republicans are seeking to avert more than $600 billion in tax increases and spending cuts set to start on Jan. 1.
“The U.S. budget negotiations are on top of everybody’s mind and that will have a bearing on the near-term outlook for equities,” Aneesh Srivastava, who oversees $470 million as the chief investment officer at IDBI Federal Life Insurance Co. in Mumbai, said by phone. “A deal would definitely be reached. But until such time, investors are going to remain cautious.”
The 21 nations in MSCI’s developing-nations gauge send about 17 percent of their exports to the U.S. on average, data compiled by the World Trade Organization show…”
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