Asian Stocks Drop As Political Risk Worries Investors – Asia Market Wrap

Asian equities declined as traders anticipated this week’s major central banks’ policy announcements while investors assessed the possible effects of political unrest in France and other countries.

Japanese equities led the two-week-long drop in MSCI’s Asia Pacific Index. Following statistics showing Chinese retail spending exceeded estimates, Hong Kong shares increased before retreating from the gains. Benchmark 10-year Treasury bonds declined, but US equities futures barely moved. Due to holidays, markets in Singapore, India, and Indonesia are closed.

A measure of global stocks fell for the first time in two weeks as investors’ focus turned back to political turmoil across the globe following France’s unexpected parliamentary election, signalling a turnoff in risk sentiment and a shift towards haven assets. The dollar gained little.

European equities futures increased, suggesting that last week’s losses might be gone. After plunging to its lowest level in two months last week, the Euro steadied. Futures on French bonds fell.