Emerging Stocks Drop as Traders Watch China’s Economy

(Bloomberg) — Emerging stock markets declined on fresh signs of economic doldrums in China in a session marked by low liquidity with the US market closed for the Labor Day holiday.

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The MSCI emerging market equities index fell as much as 0.4% on Monday, with losses in Chinese blue-chips such as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. outweighing a rebound in shares of Taiwan Semiconductor Manufacturing Company Ltd.

The slide followed data showing Chinese factory activity contracting for a fourth straight month in August, the latest signal that the world’s second-largest economy may struggle to meet this year’s growth target.