LONDON: Emerging stocks retreated from 5-1/2 month highs on Wednesday, after a fresh oil price tumble and a slide in mainland Chinese shares.
Turkish bond yields fell to 10-month lows on expectations of an interest rate cut.
Most Asian equity markets fell, tracking Shanghai which had its worst daily performance in eight weeks, with a 2 percent fall on signs the central bank could discourage more borrowing by companies.
Hong Kong and Taiwanese stocks fell more than 1 percent, leading MSCI's emerging equity index 0.6 percent lower . Markets were also pressured by losses on crude futures which lost more than 2 percent.
Analysts noted that while China posted firm growth data recently, there are concerns about the amount of credit that was used to generate this.
"Macro data is starting to improve but this is the resurgence of the old economic growth model, we are seeing a pick-up in aggregate financing," said Jinny Yan, chief China economist at ICBC Standard Bank.
"It suggests that rebalancing, clamping down on overcapacity and shifting to a new style of growth is either starting to slow down or emphasis is shifting in another direction that's what markets are pricing in."
Many markets suffered from the oil pullback, with Russian stocks opening weaker.
But the indexes bounced, led by a 1.4 percent jump in state oil firm Rosneft after a Dutch court overturned an arbitration court's ruling that Moscow must pay $50 billion to shareholders of an oil firm seized over a decade ago.
The rouble traded flat against the dollar after falling as much as 1 percent earlier in the day.
The Turkish lira eased 0.2 percent against the dollar just before a central bank meeting which will be Murat Cetinkaya's first as governor. He took over on Tuesday and pledged to bring inflation under control.
Markets nevertheless expect him to cut the upper end of the interest rate corridor by 50 basis points from 10.5 percent . While that should pacify the government which is calling for lower rates, a cut to the upper band will not necessarily reduce borrowing costs.
Turkish bond markets have rallied since Cetinkaya's nomination on relief that an existing board member had been appointed. Ten-year yields fell further to 10-month lows .
Dollar bond markets continued to see new issuance, with Malaysia marketing a $1.5 billion sukuk and Russia's VimpelCom poised to issue a $1.2 billion bond, its first in more than three years.
Argentina's newly issued $16.5 billion worth of bonds traded higher after the sale and its existing curve also rallied, with its average yield spread over Treasuries falling to the lowest since 2007.
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