Asia's regional index plunged to a three-week low, oil fell and emerging market and commodity currencies weakened on renewed worries about the Chinese economy. Gold advanced (+0,6%) and copper traded at its lowest since July 2010.
The MSCI Asia Pacific index fell 1,4% as of 10:57 am in Tokyo, heading for its worst close since February 20. The yen was at 102.90 against the dollar after gaining ground against major international currencies.
Most Asian stocks weakened as the bond suspension of Shanghai-listed Baoding Tianwei Baobian Electric – one week after China's first onshore default by Shanghai Chaori Solar Energy Science & Technology – stoked financial market doubts Chinese. At the same time disappointing data on the economic front of the second world power has unleashed turmoil in the metals business.
“Investors have been scrambling for safe havens at a time of great anxiety about the stability of China's financial market,” said Tony Farnham, an analyst at Patersons Securities in Perth. The Ukrainian crisis "continues to bubble under the surface, like a volcano".
The Hang Seng Index slipped 1,6% and the Hang Seng China Enterprises was on track to complete its biggest one-day loss since Feb. 4 in Hong Kong. The Shanghai Composite was at its lowest since July. All 33 industry groups of the Topix were in decline. The Nikkei 225 Stock Average was down 2,2 percent. Australia's S&P/ASX 200 Index (Australia is China's largest trading partner) slipped 1,1%, while South Korea's Kospi fell 1,2%.
