Asian stocks fell, pushing the benchmark lower for the fourth day in a row. Government bonds also retreated after US Treasury income hits a two-year high. The Malaysian ringgit weakened for the seventh consecutive day, while the prices of many metals recovered.
The MSCI Asia Pacific index was down 0,4% as of 9:41am in Tokyo, heading into its longest period of declines since late July. QBE Insurance Group led the slide in Australian shares (-0,9%) on the announcement of a 37 percent fall in profits. Japan's Topix fell for the third time in four days, shedding 0,6%, the largest fall for the week. Korean Kospi fell 0,1% as it declined for the third consecutive day.
Strong signs that Asian economies are struggling to recover have fueled pessimism in markets, already concerned about the Federal Reserve curtailing bond purchases in September. "It's a very complicated period," said Richard Yetsenga, head of global markets research at the Australia & New Zealand Banking Group. “Overall, Asia doesn't seem like an attractive area. The market is getting used to a new environment where US bond yields are rising rather than falling.
Read Bloomberg
