KUALA LUMPUR (Sept 2): Malaysia’s ringgit fell the most in more than a week and bonds dropped as a slump in Brent crude prices clouds the outlook for government finances in the oil-exporting nation.

Brent decreased 1.4% after falling 8.5% on Tuesday in its biggest decline since 2011 before U.S. stockpiles data. The price of the commodity has halved in the past year, cutting Malaysia’s export earnings and contributing to a 25 percent slide in the ringgit. The FTSE Bursa Malaysia KLCI Index of stocks closed lower as other Asian equities dropped on concern about a slowdown in global economic growth.

An overnight drop in emerging-market currencies and a retreat in Brent “should see Asia falling back in line with the rest of the world where risk appetite remains impaired,” said Nizam Idris, the Singapore-based head of foreign-exchange and fixed-income strategy at Macquarie Bank Ltd. “Oil has been volatile.”

The ringgit weakened 1.1% to 4.2110 a dollar in Kuala Lumpur, the steepest decline in Asia, according to prices from local banks compiled by Bloomberg. It reached a 17-year low of 4.2990 on Aug 26. The FTSE Bursa Malaysia KLCI Index was down 1.2%.

A report Tuesday showing China’s official gauge of manufacturing fell to a three-year low last month fueled further concern that growth in Malaysia’s biggest export market is slowing. Data on Friday may show overseas shipments from the Southeast Asian nation increased 3.2% in July, from a year earlier, slowing from 5% the previous month, according to the median estimate in a Bloomberg survey.

The 10-year government bond yield rose four basis points to 4.27%, after dropping 17 basis points on Tuesday, Bursa Malaysia prices show.