Market rout worsens with slowdown in China lending

Emerging-market stocks posted the biggest weekly drop since September and currencies slid as the worsening commodities rout and slowing credit growth in China undermined the outlook for global economic expansion and trade. The Colombian peso slumped to a six-week low, leading currencies lower.

Equity gauges in Taiwan, South Africa and Colombia led losses this week as the MSCI Emerging Markets Index pierced through the 50-day moving average for the first time since May. Energy companies paced weekly declines among 10 industry groups as Brent crude traded below $45 a barrel amid a bigger-than- expected US glut. Russia's ruble had its worst weekly drop in more than two months, while the currency of net-oil-importer Turkey advanced the most among peers. China stock-index futures slid after the country doubled margin requirements for stocks trading.

Concerns are mounting that China's faltering economy will deepen a rout in commodities as investors brace for the first U.S. interest-rate increase since 2006.