Japan’s Topix index tumbled almost 7 percent, the most since the aftermath of the March 2011 tsunami and nuclear disaster, as financial firms slid amid rising bond yields. Nikkei 225 Stock Average futures traded in Osaka and Singapore fell in after-hours trade, signaling further declines.
Japanese government bonds fell, with 10-year rates touching 1 percent for the first time in a year, on speculation the Federal Reserve will curb stimulus and the Bank of Japan will tolerate an increase in yields.
DBS Group Holdings Ltd. got approval from Indonesia’s central bank to acquire a $2.75 billion stake in PT Bank Danamon Indonesia, giving Southeast Asia’s largest lender less control than it had sought.
Japan’s three biggest banks led by Sumitomo Mitsui Financial Group Inc. forecast earnings will decline this year as monetary easing makes loans less profitable even as borrowing picks up amid an economic recovery.
Japanese stocks fell, with the Topix Index retreating from a 4 1/2-year high, as technical indicators signaled the market may be overheating and Mitsubishi UFJ Financial Group Inc. led banks lower on earnings.
Asian stocks fell, with the regional gauge retreating from a five-year high, as a drop in Japanese banks after forecasting lower earnings offset a report that Japan’s economy expanded faster than analysts estimated.