Asian stocks were poised to extend the global equity selloff, with index futures from Australia to the U.S. sliding as the anxiety that marked last month’s market turmoil returns.
Futures on Asian benchmarks slid at least 1 percent in recent trading, after commodity producers and car stocks drove the Standard & Poor’s 500 Index down 1.2 percent to an almost two-week low. Demand for the safest investments continued Wednesday, with Australian and New Zealand bonds tracking a rebound in Treasuries and the yen holding gains. Copper futures hovered near their lowest price this month with a private gauge projected to show a seventh straight month of contraction in China’s manufacturing sector.
Renewed concern over China’s faltering economy, the source of last month’s market ructions, sank commodities on Tuesday, with equity volatility spiking from the U.S. to Europe as the scandal over car emissions standards engulfing Volkswagen AG also frayed nerves. Markets have been swinging since the Federal Reserve stood pat on interest rates last week, as officials proclaiming the strength of the U.S. economy and prospects for a hike this year muddy the waters. Japanese markets remain closed for holidays Wednesday.
Source : Bloomberg