Asian stocks fell with U.S. equity-index futures, extending a rout that wiped $1.54 trillion from global shares last week, and sovereign bonds rose amid concern that pledges to keep record-low interest rates won’t be enough to offset a global economic slowdown. The yen climbed with gold.
The MSCI Asia Pacific excluding Japan Index fell 0.8 percent by 9:55 a.m. in Hong Kong, heading for its lowest close since March as information-technology companies followed their U.S. peers lower. Standard & Poor’s 500 Index futures lost 0.4 percent after the gauge dropped the most since 2012 last week. The yen strengthened to a three-week high as gold jumped 0.98percent. Brent crude extended last week’s slump, falling toward an almost four-year low. Ten-year Treasury futures climbed to an 11-month high and Australian bonds rose.
Stocks have fallen on concern that valuations are too high as the Federal Reserve removes stimulus and economic indicators from China and Japan to Germany signal weakness. U.S. rate rises could be delayed by slowdowns elsewhere, Fed Vice Chairman Stanley Fischer said during International Monetary Fund meetings in Washington at the weekend, and Fed Governor Daniel Tarullo said he’s worried about global growth. China is due to report trade data today, while in Hong Kong, police started removing roadblocks as protests enter their third week.
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