Emerging-market stocks dropped for the first time in five days after Chinese services industries expanded the least in more than a year and falling palm and crude-oil prices dragged producers lower. Sime Darby Bhd. (SIME), the world’s biggest listed palm-oil producer, tumbled 4.7 percent in Kuala Lumpur after the commodity posted its steepest loss since October 2008 yesterday. PetroChina Co., China’s biggest oil producer, lost 1.4 percent after crude retreated for a second day. The MSCI Emerging Markets Index (MXEF) slid 0.1 percent to 1,005.20 at 1:17 p.m. in Hong Kong. China’s purchasing managers’ index fell to 53.7 from 56.3 in August, according to official reports today, underscoring a slowdown that spurred the Asian Development Bank to lower its 2012 regional growth estimate. Chinese and South Korean markets are closed for trading today. “Investors are jittery as global prospects aren’t bright,� Ang Kok Heng, who manages the equivalent of $425 million as chief investment officer at Phillip Capital Management Sdn., said by phone from Kuala Lumpur. “There’s low volume as some markets are closed.� The ADB forecast today Asia excluding Japan will expand 6.1 percent this year, the slowest pace since 2009. Malaysia’s FTSE Bursa Malaysia KLCI Index fell 0.6 percent. Taiwan’s Taiex Index (TWSE) lost 0.4 percent. The Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong added 0.1 percent after being closed for two days. Industrial and energy companies were the biggest drag on the MSCI Emerging Markets Index today. The broader measure has risen 9.7 percent this year, trailing an 11 percent increase in the MSCI World Index (MXWO) of developed countries. The emerging- markets gauge trades at 11.3 times estimated earnings, compared with the MSCI World’s multiple of 13.2, data compiled by Bloomberg show. To contact the reporter on this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net To contact the editor responsible for this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net

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