Japan’s Topix index fell on a partial shutdown of the U.S. government. Losses were limited as the Tankan survey of large manufacturers beat estimates and Prime Minister Shinzo Abe confirmed a plan to lift the sales tax.
Asian stocks tumbled, dragging down the MSCI Asia Pacific Index by the most in 14 months after a U.S. jobs report missed economist estimates and concern grew that Europe’s sovereign-debt crisis is spreading.
Japanese shares dropped for a fourth day after the Dutch prime minister resigned over austerity measures, deepening concern over Europe’s debt crisis, and a leading gauge of China’s economic growth slowed.
Japanese bonds rose, pushing benchmark 10-year yields to the lowest level since 2003, amid speculation the government will persuade the central bank to take further measures to keep borrowing costs low.