Taiwan, seeking to rein in the local dollar and boost export competitiveness, tightened limits on domestic banks’ bullish bets on the currency following the yen’s tumble to the lowest level since 2008.
Japan’s Topix Index slid the most since March 2011 as financial and real estate shares plunged amid rising bond yields. Exporters slid as the yen gained and a Chinese manufacturing index unexpectedly signaled contraction.
China’s stocks erased declines as consumer-staples producers and technology companies led a rally for companies whose earnings are less dependent on economic growth. Materials and consumer-discretionary shares slid after a report showed an unexpected contraction in manufacturing.
Indonesia’s government bonds fell, driving the 10-year yield to a seven-month high, after the central bank signaled the next move in interest rates is likely to be an increase. The rupiah fell for a fourth day.
Asian stocks fell the most in 10 months and metals sank on disappointing Chinese manufacturing data. The dollar rose against most of its major peers as Federal Reserve Chairman Ben S. Bernanke said the central bank may cut bond purchases once it’s confident of sustained economic gains.
Federal Reserve Chairman Ben S. Bernanke and his fellow policy makers, expressing concern that federal budget cuts are blunting the recovery, signaled little appetite for reducing record stimulus without what he called “real and sustainable” progress in reducing unemployment.
Emerging-market stocks fell the most in five weeks, led by technology and industrial companies, as data showed Chinese manufacturing is contracting and speculation grew the Federal Reserve will scale back stimulus.
Accounting changes that would require companies to report more of their leases as assets and liabilities may encourage businesses to structure shorter-term rental agreements that could hamper the ability of lessors to predict cash flows, according to Fitch Ratings.