China Sparks Drop in Emerging-Market Stocks; Oil, Copper Fall Share | Email | Print | A A A By Gavin Serkin and Laura Cochrane July 29 (Bloomberg) -- Chinese stocks plunged the most in eight months, dragging emerging markets lower, on speculation the government will curb investment to prevent a bubble. Oil led a drop in commodities. The Shanghai Composite Index fell 5 percent, its biggest decline since Nov. 18, snapping a five-day, 7 percent advance. The MSCI Emerging Markets Index sank 1.2 percent to 826.68 at 11:50 a.m. in London, the lowest level since July 13. Oil and copper fell the most in three weeks. The yen and the dollar rose as investors shunned higher-yielding currencies. âSpeculation the central bank may take steps to rein in liquidity worried the market,â said Gabriel Gondard, deputy chief investment officer at Fortune SGAM Fund Management Co., which oversees about $7.2 billion in assets. âA lot of people were looking to take profitsâ in China, he said. Chinese stocks are trading at 35.3 times reported earnings, more than twice the average in emerging markets, after a 79 percent surge in the Shanghai index this year on prospects for a global economic rebound. Federal Reserve Bank of San Francisco President Janet Yellen said yesterday the U.S. economyâs recovery is likely to be âpainfully slowâ as consumers spend less and save more.... Read more.... http://www.bloomberg.com/apps/news?pid=20601087&sid=a4Jox5hI9P94