Emerging-market stocks fell, driving a benchmark index to its lowest level in almost three weeks, after a slump in U.S. consumer confidence fueled concern the global recovery is faltering. The MSCI Emerging Markets Index declined 0.6 percent to 919.39 at 1:06 p.m. in Singapore, set for its lowest close since June 11. The gauge has slid 9 percent in the past three months, headed for its worst quarterly performance since the period ended Dec. 31, 2008. Shares extended a global rout as an unexpected drop in U.S. consumer confidence added to concern sparked by the downward revision of an economic indicator for China. President Barack Obama said the U.S. economy faces “headwinds” from Europe’s debt crisis, while reports today and tomorrow may show gains in U.S. business activity and Chinese manufacturing are moderating. “With the numbers coming in now, our view is that the recovery isn’t as strong as expected,” said Choo Swee Kee, who manages about $202 million as chief investment officer at TA Investment Management Bhd. in Kuala Lumpur. “The negative reaction in the market is due to sentiment; if it does correct sharply, it’s a very good opportunity to pick up stocks.” The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, slid 1.1 percent, set for its lowest close since April 9, 2009. Jiangxi Copper Co. and Zhuzhou Smelter Group Co. led declines among raw-material producers after metal prices retreated. Poly Real Estate Group Co., the second-largest developer by market value, dropped 2.6 percent. Austerity Measures The Shanghai Composite has tumbled 23 percent this quarter, heading for the biggest loss since the three months to March 2008, as policy makers tightened rules for the property market and concern grew that Europe’s austerity measures will hurt demand in China’s largest export destination. The equity index is the world’s third-worst performer this year, down 27 percent. India’s stocks fell, with the benchmark Bombay Stock Exchange’s Sensitive Index losing 0.2 percent. Taiwan’s Taiex index fell 1.4 percent to the lowest since June 11. Taiwan stocks fell 11 percent in the first half, retreating from a 78 percent rally last year. South Korea’s Kospi index fell 0.9 percent, paring the year-to-date gain to 0.6 percent. To contact the reporter on this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net

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