Asian stocks fell for a second day after a retreat in global equities as concern mounts over the selloff in bonds. Consumer companies led losses.
The MSCI Asia Pacific Index slid 0.1 percent to 151.43 as of 9:01 a.m. in Tokyo. While a successful auction of three-year debt helped arrest the slump in U.S. Treasuries, bonds from Europe to Japan were sold off Tuesday amid a rout that has erased more than $450 billion in value from the global market. The Stoxx Europe 600 Index sank 1.3 percent, while the Standard & Poor’s 500 Index lost 0.3 percent.
“Rising bond yields are making equities less attractive,” Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages $124 billion, said by phone. “Markets don’t go up in a straight line and after a while they get vulnerable to a pullback and this is what’s happening here. This is a correction and not the start of a bear market. We’re still seeing fairly constrained global growth and central banks are still running very easy monetary policies.”