Asian stocks fell, with Australian shares leading the regional index toward its lowest close since June as bond risk rose to a three-month high after a selloff in U.S. equities. New Zealand’s dollar strengthened from a one-year low after a smaller-than-estimated trade deficit.
The MSCI Asia Pacific Index lost 0.2 percent by 12:22 p.m. in Tokyo, dropping a third day as the S&P/ASX 200 Index slumped 0.7 percent in Sydney. Standard & Poor’s 500 Index futures added 0.1 percent after three days of losses for the U.S. gauge. A measure of Asian credit-default swap prices climbed one basis point to the highest since Sept. 1. The yen gained 0.2 percent to 108.65 a dollar, while the kiwi added 0.3 percent after slipping as much as 1 percent last session.
Australia cut its iron ore price forecasts as slower growth and a “cyclical downturn” in the housing sector in China sap demand amid rising supply. About $919 billion has been wiped from the value of global equities since a record on Sept. 18, amid concern that the global economic recovery is wavering and escalating conflict in the Middle East.
Japan’s Topix index slid 0.5 percent after a holiday. SoftBank Corp., the Japanese company that owns more than 30 percent of Chinese e-commerce giant Alibaba Group Holding Ltd., was the biggest drag on the regional index, slumping 3 percent. Alibaba declined a second day in New York, losing 3 percent to $87.17 amid concern over the outlook for Asia’s largest economy.