Asia Stocks Fall Amid Geopolitical Worries

Asian stocks fell as Chinese shares slumped and the yen weighed on Japanese equities. Treasuries climbed amid increasing caution about geopolitical risks and the path of U.S. interest rates.

Chinese equities traded in Hong Kong fell toward a one-month low. Shares in Seoul extended the longest losing streak since June as tensions over both Syria and North Korea remain in focus. U.S. bond yields added to declines after Federal Reserve Chair Janet Yellen confirmed that the central bank has shifted its focus to sustaining economic gains from post-crisis healing. Oil was steady after a five-day rally, its longest stretch this year.

The White House press secretary warned Syria to stop using barrel bombs against civilians, suggesting President Donald Trump may expand the criteria for action against Bashar al-Assad’s regime after last week’s missile attack on a Syrian airbase. South Korean assets have sold off amid speculation the U.S. could make a similarly aggressive pivot when it comes to Pyongyang.

Investors are also speculating on the path for interest rates, after Friday’s weaker-than-expected U.S. jobs report. The Fed is aiming to ease back significantly this year on the level of support the central bank is providing the U.S. economy as they close in on their goals of full employment and 2 percent inflation.

Here are the main moves in markets:

Currencies

· The yen gained 0.3 percent to 110.62 per dollar as of 1:34 p.m. in Tokyo, strengthening for a second day. The Bloomberg Dollar Spot Index was little changed.

· The South Korean won dropped 0.5 percent, extending a six-day loss to 2.9 percent.

Stocks

· Japan’s Topix fell 0.5 percent, after a two-day advance. Australia’s S&P/ASX 200 gained 0.3 percent as energy shares advanced.

· South Korea’s Kospi fell 0.5 percent, extending a selloff to a sixth straight sessions. The measure has lost 2.1 percent during that period.

· Hong Kong’s Hang Seng lost 0.9 percent. The Hang Seng China Enterprises Index slid 1.1 percent. The gauge has dropped 4.8 percent from a 17-month high reached last month. The Shanghai Composite Index retreated 0.5 percent.

· Futures on the S&P 500 Index declined 0.1 percent. The benchmark gauge climbed less than 0.1 percent on Monday, while the CBOE Volatility Index, or VIX, rose to the highest level this year. Volumes in many markets are down in a week that’s shortened in many countries by Easter holidays.

· The Stoxx Europe 600 Index was flat on Monday, after a four-day rally to the highest since December 2015.

Bonds

· Treasuries rallied, with the yield on the 10-year note dropping three basis points to 2.34 percent, after a two basis point decline on Monday.

· Australian 10-year yields fell five basis points to 2.52 percent.

Commodities

· Oil fell 0.1 percent to $53.02 after jumping 1.6 percent on Monday. West Texas Intermediate crude gained 5.7 percent over the past five sessions.

· Gold rose for a third day, adding 0.1 percent to $1,256.31 an ounce.

· Iron ore futures climbed 1.8 percent in China after dropping 7.1 percent in the previous two sessions. The commodity fell into a bear market on Friday.


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