Asian stocks fell, extending the regional index?s steepest weekly slump since 2012, as western nations disputed Crimea?s vote to rejoin Russia and China eased control over the yuan. Gold drove an advance in precious metals while the yen maintained gains against the dollar.

  The MSCI Asia Pacific Index lost 0.2 percent by 9:59 a.m. in Tokyo, after slipping the most since May 2012 last week. Japan?s Topix Index dropped 0.4 percent, while Standard & Poor?s 500 Index futures fell 0.1 percent after earlier losing as much as 0.5 percent. Gold rose from a six-month high as silver added 0.3 percent. The yen was steady after last week?s 1.9 percent jump and yuan volatility surged to an 18-month high. Oil in New York rose 0.2 percent in a third rising day.

 

Preliminary results show that more than 95 percent of voters in the Black Sea region of Crimea chose to leave Ukraine and become part of Russia in a referendum deemed illegal by the European Union and the U.S. China?s central bank doubled the yuan?s trading band at the weekend as signs of an economic slowdown quell appreciation pressures on the currency. Global stocks capped the longest run of daily declines since 2012 last week amid concern over China?s economy and the Ukraine crisis.

?Investors are pretty nervous about the China story at the moment,? Adrian Mowat, Hong Kong-based chief Asia and emerging-market strategist at JPMorgan Chase & Co., said in a Bloomberg TV interview. ?This adds to uncertainty. Throw in what?s going on with Crimea, I?d imagine it?s going to be a difficult week for markets.?

?Dangerous, Destabilizing?

Western countries have threatened to ratchet up sanctions against Russia if it doesn?t back down on annexing Crimea. Russia has deployed about 60,000 troops along the Ukrainian border, the government in Kiev said. The majority of Crimea?s residents are ethnic Russians and President Vladimir Putin says they are at risk after last month?s ouster of Ukraine?s president Viktor Yanukovych, who was backed by the Kremlin.

The international community ?will not recognize the results of a poll administered under threats of violence and intimidation from a Russian military intervention,? the White House said in a statement. ?Russia?s actions are dangerous and destabilizing. Military intervention and violation of international law will bring increasing costs for Russia.?

The Nikkei 225 Stock Average lost 0.1 percent after sliding 6.2 percent last week, the biggest slump since June and the worst performance among 14 developed markets tracked by Bloomberg. MSCI?s Asia Pacific measure fell 3.5 percent last week, its first drop in five weeks.

Alibaba IPO

Australia?s S& P/ASX 200 Index dropped 0.1 percent today, while New Zealand?s NZX 50 Index (NZSE50FG) fell 0.4 percent. The Kospi Index in Seoul rose 0.2 percent following last week?s 2.8 percent decline, the most since the start of the year.

Futures on Hong Kong?s Hang Seng and Hang Seng China Enterprises indexes dropped at least 0.3 percent in most recent trading. The China Enterprises measure extended declines from a December high March 14 to as much as 20 percent before paring losses. A drop of that magnitude from a recent high constitutes what some investors regard as a bear market.

The Bloomberg China-US Equity Index of the most traded Chinese stocks in New York slipped 0.1 percent March 14, bringing its weekly retreat to 7.1 percent, the first decline since January.

Alibaba Group Holding Ltd., China?s biggest e-commerce company, has started the process of undertaking a U.S. initial public offering after struggling to get Hong Kong to approve its proposed governance structure, according to a person familiar with the matter.

Haven Bets

Gold climbed to $1,385.17 an ounce after jumping 0.9 percent March 14 to a more-than six-month high of $1,383.05 in the spot market. Silver rose to $21.52 an ounce following a 1.2 percent climb March 14 that brought the precious metal?s weekly advance to 2.6 percent. Platinum and palladium added at least 0.4 percent.

The yen, regarded along with gold as a haven investment, was little changed at 101.41 per dollar after climbing against all 16 major currencies tracked by Bloomberg last week.

Investors should bet on gains in the yen and the Swiss franc as Crimea voting to join Russia raises the odds of broad economic sanctions against Russia, Stephen Gallo, European head of currency strategy in London at Bank of Montreal, said in an interview.

Three-month non-deliverable forwards on Russia?s ruble gained 0.2 percent to 37.51 per dollar in early trading after the currency slid to a record-low versus the greenback at the end of last week. Russia?s Micex Index entered a bear market March 14, losing the most last week since May 2012.

Band Widening

From today, the yuan will be able to trade as much as 2 percent either side of a daily reference rate set by the People?s Bank of China, from 1 percent previously, policy makers said in a March 15 statement. The move underscores China?s pledged to make the exchange rate more market based to promote freer movement of capital. The central bank said it will continue to boost the yuan?s two-way flexibility after saying last month an ?orderly? widening of the band was among its 2014 policy goals.

The yuan lost 0.4 percent last week in Shanghai, to 6.1502 per dollar. One-month implied volatility on the yuan, used to price options, rose 29 basis points to 2.72 percent, touching 2.73 percent, the highest level since September 2012. The offshore yuan reached its weakest intraday level since May.

?Given that the widening comes at a time of yuan weakness, we think the implicit message is that the authorities are comfortable with further currency weakness as well as two-way movements in the exchange rate,? Win Thin, global head of emerging-markets strategy in New York at Brown Brothers Harriman& Co., wrote in a research note today. ?Market sentiment was already jittery ahead of the weekend and we expect the PBOC move to feed further into risk-off trading to start off this week.?

Treasury Yields

Concern that the Crimea referendum could spur an escalation in tensions between Russia and Ukraine along with weaker-than-estimated Chinese economic reports from exports to industrial production wiped out about $1.2 trillion from global equities in the four days to March 14. The MSCI All-World Index dropped 0.6 percent March 14 in a sixth day of declines.

Hong Kong reports its jobless rate today while the euro zone will issue final inflation data for February. Indian markets are closed for a holiday.

Yields on 10-year U.S. Treasuries fell one basis point, or 0.01 percentage point, to 2.64 percent after declining 13 basis points last week, the biggest drop since January. U.S. data March 14 showed consumer confidence unexpectedly fell in March to a four-month low. A separate report indicated producer prices declined in February.

Fed Meeting

The Federal Reserve is trying to determine how much recent economic data has been affected by cold weather. Chair Janet Yellen said last month the economy was strong enough to withstand measured reductions to the monthly bond-purchase program. Policy makers meet start their two-day meeting tomorrow.

WTI crude oil climbed to $99.11 a barrel after sliding 3.6 percent last week, the most since the start of the year. Brent - - the oil type used to calculate prices for Russia?s Urals crude -- rose 0.2 percent to $108.38 a barrel.

Copper futures rose 0.2 percent to $2.957 a pound after earlier slipping as much as 0.7 percent. Chile, the world?s biggest copper-producing nation, evacuated some coastal communities after a 6.7-magnitude earthquake in the country?s far northern region.

Copper ?Attractive?

Futures on copper touched $2.908 a pound March 12, the lowest price for a most-active contract since July 2010. Barclays Plc said last week that the metal?s slump to a 44-month low made it ?attractive.? China is the world?s biggest consumer of industrial metals.

Unprecedented European natural-gas reserves, record global grain output and the prospect of economic damage to both the west and Russia of oil sanctions are cushioning commodities amid the Ukraine-Russia tussle. U.K. gas prices remain at the lowest for this time of year since 2010 while wheat and corn are still at least 26 percent below peaks reached in 2010, data compiled by Bloomberg show.



 

Asian stocks fell, with a regional gauge set for the biggest weekly slump since May 2012, while gold climbed with regional bond risk on concern China?s economy is faltering. Wheat headed for a second weekly gain before Crimea votes on leaving Ukraine. 

  The MSCI Asia Pacific Index sank 1.6 percent by 1:03 p.m. in Tokyo, set for its lowest close since Feb. 10. A gauge of Chinese firms in Hong Kong fell as much as 20 percent from a Dec. 2 high while Tencent Holdings Ltd. tumbled 5 percent after a report China?s central bank halted some forms of electronic payment. The Nikkei 225 Stock Average slid 2.8 percent as the yen headed for its biggest weekly advance since Jan. 24. The cost of insuring Asia-Pacific bonds from default jumped 4 basis points. Gold advanced to a six-month high while copper headed for its biggest weekly slump since April.

About $1.2 trillion was wiped from global stocks this week through yesterday as Chinese economic data missed estimates, overshadowing signs of improvement in the U.S. economy. The Black Sea region of Crimea votes March 16 on becoming independent or rejoining Russia, with the U.S. and Germany threatening Moscow with sanctions over its support for the secession. The U.K. reports trade data today and India releases a key inflation indicator.

?There is very little doubt that the Chinese economy is going through a structural slowdown,? said Matthew Sherwood, who helps manage about $25 billion as the Sydney-based head of investment markets research at Perpetual Ltd. ?Investors are voting with their money and decreasing their risk exposure after a pretty good six-week rally. They are increasing their exposure to riskless government bonds.?

Treasuries Rally

Treasuries rallied by the most since September this week, sending the yield on benchmark 10-year notes down by 14 basis points since March 7 to 2.64 percent. The Standard & Poor?s 500 Index erased its gain for the year yesterday. Futures (SPA) on the U.S. equity benchmark rose 0.2 percent.

Bank of America Corp., UBS AG, JPMorgan Chase & Co. and Nomura Holdings Inc. lowered their forecasts for Chinese economic growth in 2014. Data yesterday showed factory output rose in January and February from a year earlier by the least since the global financial crisis, while retail sales grew at the slowest rate for the period since 2004. Reports at the weekend showed an unexpected plunge in overseas shipments.

About seven stocks fell for each that advanced on the Asia-Pacific gauge, which is headed for a 3.4 percent drop in the week, the first decline in more than a month.

The Hang Seng China Enterprises Index fell as much as 1 percent to 9,230.38, more than 20 percent below its high from December last year. The Hang Seng Index (HSI) dropped 1 percent and is on track to cap its biggest weekly drop since May 2012. The Shanghai Composite Index retreated 0.5 percent.

Virtual Cards

Tencent, China?s largest internet company, is on the way to its biggest weekly rout since November 2011 after a report that the People?s Bank of China halted virtual credit card and face-to-face payment services. New World Development Ltd. (17), controlled by billionaire Cheng Yu-tung, tumbled 15 percent after the company offered $18.6 billion ($2.4 billion) to take its China property unit private after shares in the arm traded below net asset value for more than six years.

Australia?s S& P/ASX 200 Index sank 1 percent today. The country counts China as its biggest trading partner. The Kospi Index (KOSPI) in Seoul lost 0.6 percent.

The MSCI All-Country World Index, a gauge of global equities, dropped 0.8 percent yesterday for a fifth falling day, its longest stretch of declines since November 2012. The measure reached the highest level since December 2007 last week.

Worst Performer

?The concerns are overdone,? Tim Radford, a strategist at Rivkin Securities in Sydney, said by phone. ?Markets had a pretty good run and people are taking some risk off the table.?

Japan?s Topix index dropped 3.27  percent, as all 33 industry groups retreated for the week. The Nikkei 225 is the developed world?s worst performer this week.

The yen is posting the biggest gain among the 16 major currencies this week, rising 1.4 percent versus the greenback. Japan?s currency, regarded by some investors as a safe haven, climbed 0.2 percent to 101.66 per dollar today, after climbing 0.9 percent in the previous session.

Gold, also seen as a haven investment, rose a fourth day in the spot market to $1,371.99 per ounce, the highest price since Sept. 10. Silver rallied 0.2 percent while palladium gained 0.3 percent.

Ten-year U.S. Treasury yields have dropped 38 basis points this year as severe weather clouded prospects for the world?s largest economy, while concerns grew that China?s economic slowdown will worsen.

Economists and strategists surveyed by Bloomberg have cut their forecasts for the 10-year yield and see it rising to 3.35 percent in the fourth quarter, according to survey conducted March 7 to 12. They saw it rising to 3.4 percent in last month?s poll.

Aussie Bonds

Australian 10-year notes yielded 4.06 percent today, down 12 basis points and set for the biggest one-day drop since Jan. 24.

U.S. Secretary of State John Kerry warned Russia that the U.S. and Europe could take ?very serious? steps should there be no sign of a resolution with Ukraine. Kerry, who told a Senate panel in Washington that ?nobody doubts? Crimea will vote to leave Ukraine, will meet face-to-face with Russian Foreign Minister Sergei Lavrov in London today. Germany?s Chancellor Angela Merkel said Russia is risking ?massive? political and economic damage by refusing to back down on Crimea. 

 

  Chinese stocks fell, sending the Hang Seng China Enterprises Index (HSCEI) down more than 20 percent from its Dec. 2 high, amid growing concern that weaker economic growth will curb earnings and spur corporate defaults.

The gauge of Chinese companies listed in Hong Kong dropped as much as 1 percent to 9,230.38, extending its retreat from a closing level of 11,548.07 on Dec. 2. The gauge of so-called H-shares pared today?s losses to 0.4 percent as of 10:52 a.m. local time and has fallen 14 percent this year.

Shares in the world?s second-largest economy have tumbled amid data showing falling exports, weaker manufacturing and lower-than-estimated loan growth. The nation?s first onshore corporate bond default last week spurred concern that more will follow after the total debt of publicly-traded non-financial companies in China and Hong Kong jumped to about $1.98 trillion from $607 billion at the end of 2007.

?There?s bad news every day,? said Du Liang, an analyst at Shanxi Securities Co. in Beijing. ?Investors are very shaken and sentiment is pessimistic.?

The Chinese stock measure has wiped out almost all of its 30 percent advance from a low in June, a rally that was fueled by easing stress in the country?s money markets and a government pledge in November to enact the broadest package of economic reforms since at least the 1990s. Investors had been looking for further policy guidance from this month?s meeting of the National People?s Congress in Beijing.

Data Disappoints

?No new reforms to stimulate the economy? is one reason investors have turned more pessimistic on the stock market, said Zhang Gang, a strategist at Central China Securities in Shanghai. ?It could fall a bit more.?

China?s industrial-output, fixed-asset investment and retail-sales growth slowed more than estimated in the first two months of the year, data showed yesterday. Reports over the weekend showed the steepest slide in exports since 2009 and the slowest inflation in 13 months.

Factory production rose 8.6 percent in the January-February period from a year earlier, the National Bureau of Statistics said yesterday, versus the 9.5 percent median projection among analysts surveyed by Bloomberg News.

?It?s economic growth the market is also worried about bad debt rising, potential defaults, fund outflows from emerging markets,? Pauline Dan, the head of greater China equities at Pictet Asset Management (HK) Ltd., said by phone from Hong Kong. ?It looks pretty oversold now. We will add selectively.?

Flexible Target

This year?s 7.5 percent economic expansion target is ?flexible? and some financial product defaults may be unavoidable, Premier Li Keqiang told a press conference at the National People?s Congress yesterday. Bank of America Corp., UBS AG, JPMorgan Chase & Co. and Nomura Holdings Inc. have all lowered their forecasts for Chinese economic growth in 2014.

The H-share gauge has posted 24 bear-market declines since Bloomberg began compiling the data in July 1993, with an average retreat of 38 percent and mean duration of 118 calendar days. The measure is valued at 1.1 times net assets, the biggest discount since September 2003 to the MSCI All-Country World Index of developed and emerging shares, which has a ratio of 2.