Asian Equities Fall as Australian Bonds Rally

Asian stocks fell, with Japanese shares retreating from a six-year high, after the Standard & Poor’s 500 Index dropped the most in almost two months. Gold rallied with sovereign bonds as the cost of insuring debt against default climbed.

The MSCI Asia Pacific Index (MXAP) lost 1 percent by 10:57 a.m. in Tokyo, as the Topix index dropped 1.3 percent from its highest close since June 2008. S&P/ASX 200 Index fell 1 percent in Sydney. S&P 500 futures added 0.1 percent after the gauge slumped 1.6 percent. Australian 10-year bond yields fell six basis points after U.S. Treasuries jumped the most in six weeks. Gold rose 0.4 percent and a gauge of Asian credit-default swaps headed for its biggest jump in eight weeks.

About $1.42 trillion has been wiped from the value of global shares this month amid concern Chinese economic growth is slowing and that U.S. interest rates may rise sooner than some investors are expecting. Japan’s inflation slowed more than estimated in August, highlighting the magnitude of the task facing Bank of Japan Governor Haruhiko Kuroda in his bid to spur inflation. Consumer-confidence data are due in the U.S., France and Germany.

Bloomberg

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