By Gavin Serkin Jan. 13 (Bloomberg) -- Emerging-market stocks dropped the most in four weeks, oil dipped below $80 a barrel and the pound rose on evidence central banks are preparing to scale back their emergency support for economic growth. The MSCI Emerging Markets Index slipped 1 percent at 10:16 a.m. in London and the Shanghai Composite Index lost 3.1 percent, the most in seven weeks. Futures on the Standard & Poor’s 500 Index climbed 0.2 percent while Google Inc. fell in Germany after saying it may exit China. Crude oil declined as much as 1.4 percent in New York, and corn plunged to a two-month low. The pound strengthened and government bonds slid, with the 10-year Treasury note yield rising 4 basis points. The People’s Bank of China yesterday raised the proportion of deposits banks must set aside as reserves, a move that may herald an interest-rate increase. Federal Reserve Bank of Philadelphia President Charles Plosser said U.S. rates should rise as the economy recovers. The Bank of England’s Andrew Sentance was cited by the Guardian as saying policy makers may have to raise U.K. borrowing costs this year. “China tightened policy sooner than people were thinking, so that spooked the market,” said Nicholas Field, who helps manage about $11 billion in emerging-market stocks at Schroders Plc in London. “We have now passed that sweet spot where economies are starting to recover and there is a great earnings boost from the low point. This is not a collapse or a crash, but we will get a correction.” China, Dubai Banks in China will need to increase deposits set aside as reserves starting Jan. 18, sooner than the April timing predicted by economists in a Bloomberg survey last week. Industrial Bank Co. slumped 6.5 percent in Shanghai. Hong Kong’s Hang Seng Index dropped 2.3 percent, the most since Nov. 27. Dubai led stock declines in the Gulf with the Dubai Financial Market General Index dropping 2.7 percent to a four- week low and Abu Dhabi’s index retreating 1.6 percent. The MSCI World Index of 23 developed nations’ stocks fell 0.3 percent as shares in Asia fell the most in almost seven weeks. Japan Airlines Corp. tumbled 81 percent to a record low on concern it will file for bankruptcy. Europe’s Dow Jones Stoxx 600 Index gained 0.2 percent. Infineon Technologies AG rose more than 3 percent in Frankfurt after Goldman Sachs Group Inc. recommended Europe’s second- largest maker of semiconductors. Societe Generale SA, France’s second-biggest bank by market value, led banks lower, plunging more than 4 percent in Paris after saying it had 1.4 billion euros ($2.03 billion) of writedowns and provisions on risky assets in the fourth quarter. U.S. Futures Futures on the Standard & Poor’s 500 Index rose, indicating the benchmark gauge for U.S. equities may rebound after dropping yesterday the most this month. Gains may be limited after Google, the owner of the most popular Internet search engine, fell 1.6 percent in German trading. The company said it may shut its Chinese Web site and offices after a “highly sophisticated” cyber attack aimed at the e-mail accounts of human-rights activists. Crude oil futures fell as low as $79.63 a barrel in electronic trading on the New York Mercantile Exchange. Corn for March delivery fell as much as 4.9 percent to $3.7325 a bushel in Chicago trading, the lowest since Nov. 9, after the U.S. raised its production estimate to a record. Wheat declined 1.4 percent. Copper dropped 1.3 percent and aluminum retreated 1.1 percent. Pound Rallies The pound advanced 0.5 percent against the dollar and 0.4 percent compared with the euro after the Guardian cited Sentance as saying policy makers have done enough to stimulate the economy. Gilts dropped, with the yield on the two-year note rising 4 basis points to 1.21 percent. Ten-year notes led declines for Treasuries before the government auctions $21 billion of the securities today, part of $84 billion of notes and bonds being sold this week. Governments around the world are selling unprecedented amounts of debt to help finance stimulus measures designed to revive their economies. Germany’s gross domestic product fell 5 percent in 2009, after expanding 1.3 percent in 2008, the Federal Statistics Office said in Frankfurt today. Germany, Italy and Portugal are scheduled to sell as much as $25 billion of bonds today.

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