Global stocks fell, led by the biggest drop in Japanese shares since the aftermath of the Fukushima disaster, while metals sank as Chinese manufacturing unexpectedly contracted and speculation mounted the Federal Reserve will cut bond purchases. The yen and Treasuries rose.
Emerging-market stocks tumbled the most in 10 months and currencies depreciated as disappointing Chinese manufacturing data and speculation the Federal Reserve will scale back stimulus cut demand for riskier assets.
The Philippine peso dropped the most since 2010 on speculation an improving U.S. economy will prompt the Federal Reserve to scale back asset purchases that have spurred fund flows into emerging markets. Bonds and stocks fell.
Asian currencies declined for a second week on speculation regional central banks will allow their exchange-rates to depreciate to keep exports competitive with Japan, as the yen fell to a four-year low.
The Philippine peso slid the most in almost nine months, following Asian currencies lower after a drop in the yen to beyond 100 per dollar for the first time in four years yesterday threatened regional exports.
Asian currencies completed the first weekly loss in more than a month on speculation the yen’s slide to beyond 101 per dollar will prompt some regional policy makers to weaken their exchange rates to protect exports.