Emerging-market stocks fell for a second day on concern Russia will face tougher sanctions as a deal to ease tension in Ukraine showed signs of collapse.

The MSCI Emerging Markets Index dropped 0.1 percent to 1,009.54 at 10:34 a.m. in New York. The Micex Index extended a two-day slide to 1.5 percent in Moscow while Ukraine’s hryvnia sank after the biggest rally on record last week. The yuan touched a 14-month low as the People’s Bank of China weakened its reference rate. Brazil’s swap rates climbed from a one-week low as economists surveyed by the central bank forecast inflation will exceed the upper limit of the official target.

Pro-Russian forces, who seized buildings in eastern Ukrainian cities, have said they’re not bound by the deal reached last week by Ukraine, the European Union, the U.S. and Russia. The Obama administration has threatened further penalties, including measures targeting the Russian banking and energy industries, unless progress is made in easing the crisis.

The iShares MSCI Emerging Markets Index ETF rose 0.2 percent to $41.84. The premium investors demand to own emerging-market debt over U.S. Treasurys fell 0.02 percentage point to 286 basis points, according to JPMorgan Chase & Co.