Asia stocks tumble after US slump; yields drop

Asian stocks slumped to nine-month lows on Thursday as investors worried that the Trump administration's approach to trade is harming global economic growth.

SYDNEY: Asian stocks tumbled at the open on Tuesday, with Japanese benchmarks sliding more than 3 percent, following a tech-led slump on Wall Street overnight thanks to a deteriorating outlook for iPhone sales. Treasury yields dropped and the yen headed higher.

Key indexes slid from Tokyo and Seoul to Sydney, and futures in Hong Kong pointed to a significant drop. Apple Inc. suppliers are under pressure after the iPhone maker faltered on signs of a deteriorating sales outlook. 

S&P 500 Index futures dipped. The Nasdaq 100 Index dropped for a third day and the Russell 2000 small-cap benchmark erased its gains for the year. Oil fell for a record 12th straight day. The dollar traded at 18-month highs.

The pound was steady after declining for a third day as pressure built on U.K. Prime Minister Theresa May to ditch her Brexit plan, while the euro slumped ahead of more potential stress around Italy’s budget. Italian bonds fell as most euro-zone debt edged higher Monday.

“Investors have a lot to deal with; we always talk about that proverbial wall of worry and that wall right now is pretty high,” David Kudla, Mainstay Capital Management chief executive officer and chief investment strategist, said on Bloomberg TV. 

“We have the issues in China with the growth concerns there, we have the issues in Europe with the battle between the Italy and the EU, the U.K. getting ready for Brexit. There is some guidance lower on earnings, and a Federal Reserve that is going to raise rates. There is a lot of indigestion among the markets and investors.”

Elsewhere, General Electric Co. extended a rout after its chief executive officer’s attempt to reassure investors fell flat. Goldman Sachs Group Inc. fell the most since 2011 after Malaysia’s finance minister said the nation would seek a “full refund” over bond deals for its sovereign wealth fund that have landed the company in the midst of corruption probes. Emerging-market stocks and currencies fell. - Bloomberg