Asian share
markets were scorched on Tuesday as stability concerns put a torch to
European bank stocks and sent investors stampeding to only the safest of
safe-haven assets.
As fear
overwhelmed greed, yields on longer-term Japanese bonds fell below zero
for the first time, the yen surged to a 15-month peak and gold reached
its most precious since June.
Japanese Finance Minister Taro Aso felt moved enough to warn the yen's rise was "rough", something of an understatement as the Nikkei .N225 nosedived 5.4 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.2 percent, with Australian shares hitting 2-1/2-year closing low, and would have been lower if not for holidays in many centres.
Spread-betters see another weak session in European shares, where German DAX .GDAX is seen falling 0.7 percent and Britain's FTSE .FTSE 0.5 percent.
S&P 500 e-mini futures ESc1 fell more than 1 percent at one point. All of which magnified the stakes for U.S. Federal Reserve Chair Janet Yellen's testimony this week.
Wall Street pared losses but still ended deep in the red. The Dow .DJI lost 1.1 percent, while the S&P 500 .SPX fell 1.42 percent and the Nasdaq .IXIC 1.82 percent.
The rout began in Europe on Monday, when the FTSEurofirst 300 .FTEU3 index shed 3.4 percent to its lowest since late 2013, led by a near 6 percent dive in the banking sector .SX7P.
Deutsche Bank (DBKGn.DE) alone sank 9.5 percent as concerns mounted about its ability to maintain bond payments. Late Monday, the German bank said it has "sufficient" reserves to make due payments this year on AT1 securities.
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| Japanese Finance Minister Taro Aso |
Japanese Finance Minister Taro Aso felt moved enough to warn the yen's rise was "rough", something of an understatement as the Nikkei .N225 nosedived 5.4 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.2 percent, with Australian shares hitting 2-1/2-year closing low, and would have been lower if not for holidays in many centres.
Spread-betters see another weak session in European shares, where German DAX .GDAX is seen falling 0.7 percent and Britain's FTSE .FTSE 0.5 percent.
S&P 500 e-mini futures ESc1 fell more than 1 percent at one point. All of which magnified the stakes for U.S. Federal Reserve Chair Janet Yellen's testimony this week.
Wall Street pared losses but still ended deep in the red. The Dow .DJI lost 1.1 percent, while the S&P 500 .SPX fell 1.42 percent and the Nasdaq .IXIC 1.82 percent.
The rout began in Europe on Monday, when the FTSEurofirst 300 .FTEU3 index shed 3.4 percent to its lowest since late 2013, led by a near 6 percent dive in the banking sector .SX7P.
Deutsche Bank (DBKGn.DE) alone sank 9.5 percent as concerns mounted about its ability to maintain bond payments. Late Monday, the German bank said it has "sufficient" reserves to make due payments this year on AT1 securities.
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