Asian share markets were scorched on Tuesday as stability concerns put a torch to European bank stocks and sent investors stampeding to only the safest of safe-haven assets.
As fear overwhelmed greed, yields on longer-term Japanese bonds fell below zero for the first time, the yen surged to a 15-month peak and gold reached its most precious since June.
Japanese Finance Minister Taro Aso felt moved enough to warn the yen’s rise was “rough”, something of an understatement as the Nikkei nosedived 5.4 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.2 percent, with Australian shares hitting 2-1/2-year closing low, and would have been lower if not for holidays in many centres.
Spread-betters see another weak session in European shares, where German DAX is seen falling 0.7 percent and Britain’s FTSE 0.5 percent.
S&P 500 e-mini futures fell more than 1 percent at one point.
Wall Street pared losses but still ended deep in the red. The Dow .DJI lost 1.1 percent, while the S&P 500 fell 1.42 percent and the Nasdaq 1.82 percent.