KUALA LUMPUR, May 27 — Emerging-market stocks fell to the lowest level in seven weeks as technology companies tumbled and speculation grew that the US is close to raising interest rates. South Korea’s won weakened.

Samsung Electronics Co led South Korean equities to the largest drop in four months. Philippine shares sank 1.7 per cent, Indonesian stocks slid 1 per cent and a gauge of Hong Kong-traded Chinese companies retreated from a 2008 high. The won decreased to an eight-week low versus the dollar, while South Africa’s rand rebounded from a three-day slide.

The MSCI Emerging Markets Index lost 0.7 per cent to 1,019.42 at 3.24pm in Hong Kong. Better-than-expected US capital-equipment orders, new home sales and regional manufacturing is bolstered the case for the Federal Reserve to tighten monetary policy, sapping demand for riskier assets.

“The impending interest rate hike would be ugly for emerging-market assets,” said Chris Eng, the head of research at Etiqa Insurance Bhd and Etiqa Takaful Bhd, units of Malayan Banking Bhd, which manages about RM25 billion. “It would be a volatile market until the first interest rate hike.”

The developing-nation index has gained 6.6 per cent this year and trades at 12.1 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has risen 4.1 per cent in 2015 and is valued at a multiple of 16.6.

Kospi slides

All 10 industry groups fell, led by a 1.2 per cent drop in technology shares. South Korea’s Kospi tumbled 1.7 per cent as HSBC Holdings Plc cut its economic growth forecast and concern a US interest-rate increase is imminent spurred foreign selling.

The won lost 0.4 per cent as a plunge in the yen fuelled concern that the Bank of Korea will intervene to protect the nation’s exporters. Samsung sank 3.5 per cent to the lowest close in four months. Hyundai Motor Co, which competes with Japanese rivals in overseas markets, slid 1.9 per cent.

The Philippine Stock Exchange Index headed for the lowest close since January 26 as concern that valuations were excessive relative to earnings prospects spurred foreign outflows. Indonesia’s Jakarta Composite Index was poised for the steepest slide since April 29 and the FTSE Bursa Malaysia KLCI Index sank for a fifth day to a four-month low.

Chinese stocks rose for a seventh day, with the Shanghai Composite Index approaching the 5,000 level for the first time since 2008 on gains for commodity and power producers. PetroChina Co, the biggest stock in the benchmark index, rallied 2.3 per cent, while Jiangxi Copper Co, the largest producer of the metal, jumped 5.1 per cent.

The Hang Seng China Enterprise Index retreated 0.7 per cent, poised to halt a two-day gain. Zijin Mining Group Co soared 15 per cent in Hong Kong, the most since October 2011, after China’s most valuable gold producer outlayed US$710 million (RM2.58 billion) in two deals that extend its reach across the globe. —  Bloomberg