Asian stocks fell for a second day as a retreat in global equities extended after stocks tumbled in China, a plunge in Greek shares spread to the rest of Europe and the yen jumped amid haven demand.
The MSCI Asia Pacific Index (MXAP) dropped 0.6 percent to 138.87 as of 9:00 a.m. in Tokyo after losing 0.3 percent the previous day. China shares tumbled the most since 2009 yesterday after government moves to tighten lending requirements sparked speculation over an economic slowdown. The Stoxx Europe 600 Index sank 2.3 percent as a measure of Greek shares posted its biggest drop in 27 years. The yen gained as much as 2.2 percent against the dollar before paring its advance.
“Caution is probably at the top of the agenda,” said Tim Schroeders, a portfolio manager who helps oversee $1 billion in equities at Pengana Capital Ltd. in Melbourne. “As some investors change asset allocations, we will see some extreme moves over the next couple of weeks.”