“Emerging-market stocks fell, snapping a seven-day rally, as a drop in technology companies overshadowed signs of a recovery in Chinese manufacturing growth.
Largan Precision Co. (3008), a lens supplier for Apple Inc., sank 6.9 percent in Taipei on speculation shipments are slowing, dragging a gauge of technology stocks to its steepest loss in a month. Hon Hai Precision Industry Co. retreated the most since April after Macquarie Group Ltd. downgraded the stock on weaker demand for iPhone 5. The Shanghai Composite Index (SHCOMP) rose the most since 2009 on bets state-backed institutions were buying shares. Turkiye Garanti Bankasi AS, a Turkish lender, headed for its highest level in two years.
“There’s a lot of speculation that iPhone shipments in the first quarter will be weak so related suppliers slumped,” Parker Wu, who helps oversee the equivalent of $98 million at Agriculture Bank of Taiwan, said by phone in Taipei today. “China’s PMI adds to evidence the economy is bottoming.”
China’s factory production may expand at a faster pace this month, based on a report today by HSBC Holdings Plc and Markit Economics. Data today may show consumer prices in the U.S. fell last month and factory output edged up as President Barack Obama and Republicans remain deadlocked over the budget. ”
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