Ringgit falls to new 1998 low as Asia sell-off sends KLCI lower

Kuala Lumpur

MALAYSIA'S ringgit dropped to a new 1998 low and stocks fell as sentiment continues to sour for emerging-market assets amid slowing Chinese growth and prospects for a US interest-rate increase.

The ringgit came under renewed pressure on Monday from a decline in Brent crude and the narrowing in the oil-exporter's trade surplus. Data on Friday showed a mixed picture of the US jobs market, which is key for determining when the Federal Reserve will tighten policy.

While the unemployment rate fell to a seven-year low, non-farm payrolls numbers missed estimates. Higher US borrowing costs may spur more capital outflows from developing nations, just as China's slowing eco…