Emerging-market stocks halt 7-day advance

Emerging-market stocks halted their longest rally in seven months amid concern slowing growth in China is hurting company earnings and South Africa may raise interest rates in 2015. Russia's rouble climbed to this year's high.

Shares in Shanghai fell for the first time in 11 days, ending the longest winning streak in 23 years. Equities in Johannesburg dropped the most in two weeks as investors awaited a central-bank policy statement on Thursday. Riyadh-traded stocks tumbled five per cent as rebel advances in Yemen boosted chances Saudi Arabia will be drawn into the conflict. The rouble led developing-nation currencies higher as oil increased.

The MSCI Emerging Markets Index slipped less than 0.1 per cent to 977.62 at 12:44 pm in London, with six of the 10 industry subgroups retreating. The gauge climbed 4.1 per cent in the past seven days as investors speculated the US Federal Open Market Committee is in no rush to raise interest rates.

"There is fatigue after the rally on the more dovish FOMC statement last week," Michael Wang, a strategist at Amiya Capital LLP in London, said by e-mail. "There is probably some profit-taking going on today. If US rates don't go up that much, we could see further gains. Asia fell slightly on the weaker US close yesterday and weak earnings in China."

Companies from Agricultural Bank of China to Huaneng Power International Inc. posted earnings that missed estimates, helping to end Chinese stock gains spurred by optimism policy makers will step up stimulus to boost growth. In South Africa, traders of forward-rate agreements boosted bets for a 25 basis- point increase in the benchmark rate by September. The Standard & Poor's 500 Index slipped 0.6 per cent on Tuesday.

Chinese slowdown
The Shanghai Composite Index fell 0.8 per cent, after a 10- day, 12 per cent rally, the longest stretch since May 1992. Agribank decreased for the first time in four days in Shanghai, sliding 2.4 per cent. Huaneng Power, the listed unit of China's largest power group, slumped the most in three weeks. The Hang Seng China Enterprises Index of Chinese shares traded in Hong Kong dropped 0.3 per cent, erasing its gain for the year.

The FTSE/JSE Africa All Share Index lost 1.2 per cent. Forward-rate agreements signaled that the central bank will shift its message on Thursday to focus on the need to raise interest rates. It is the language of the statement that investors will be scrutinising, as none of the 24 economists surveyed by Bloomberg expect the Monetary Policy Committee to make a change this time.

Saudi Arabia's Tadawul All Share Index posted the biggest decline among global equity benchmarks so far on Wednesday.