Asian stocks fell with South Korea’s won and the yen strengthened
after China lowered the yuan’s daily fixing by the most in six weeks.
Malaysia’s ringgit slumped to a two-week low as a deal between Saudi
Arabia and Russia to freeze oil production failed to assuage anxiety over this year’s crude selloff.
The MSCI Asia Pacific Index of shares dropped for the first time in three days, while the Indonesian rupiah and the won depreciated more than 0.5 percent amid speculation their central banks will bolster stimulus to help boost economic growth. European stocks opened higher, while U.S.
equity-index futures declined. American crude was below $30 a barrel after the world’s two biggest oil producers agreed to hold output near record-high levels, dashing speculation they would cut it.
Central bank attempts to calm global markets this year amid unprecedented volatility have had mixed success, with Japanese shares initially falling after the Bank of Japan announced a move into negative interest rates. Japan’s overnight call rate fell below zero for the first time in a decade, traders said.
Oil’s volatile journey in 2016 has fueled that uncertainty, amid concern over the impact on inflation. Minutes of the Federal Reserve’s most recent meeting, where officials indicated they were monitoring the turmoil in markets, are due Wednesday. Chair Janet Yellen has subsequently indicated the global ructions may delay further tightening of U.S. monetary policy.
The MSCI Asia Pacific Index of shares dropped for the first time in three days, while the Indonesian rupiah and the won depreciated more than 0.5 percent amid speculation their central banks will bolster stimulus to help boost economic growth. European stocks opened higher, while U.S.
equity-index futures declined. American crude was below $30 a barrel after the world’s two biggest oil producers agreed to hold output near record-high levels, dashing speculation they would cut it.
Central bank attempts to calm global markets this year amid unprecedented volatility have had mixed success, with Japanese shares initially falling after the Bank of Japan announced a move into negative interest rates. Japan’s overnight call rate fell below zero for the first time in a decade, traders said.
Oil’s volatile journey in 2016 has fueled that uncertainty, amid concern over the impact on inflation. Minutes of the Federal Reserve’s most recent meeting, where officials indicated they were monitoring the turmoil in markets, are due Wednesday. Chair Janet Yellen has subsequently indicated the global ructions may delay further tightening of U.S. monetary policy.
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