Asian stocks fell as investors parsed the potential impact of political volatility in France and elsewhere, while awaiting policy decisions from major central banks due this week. The MSCI Asia Pacific Index fell 1.2% to 164.45, its biggest drop in two weeks, led by a 1.5% decline in Japanese stocks.
Hong Kong shares rose 0.4% initially, then pared gains to trade little changed, after data showed Chinese retail spending beat forecasts, rising 3.9% in May, while factory output cooled, growing 3.2%, missing expectations.
Benchmark 10-year Treasuries slipped 2 basis points to 3.42%, and US equity futures were little changed. Markets including Singapore, India, and Indonesia were closed for holidays. The US dollar index rose 0.2% to 104.7, while the euro fell 0.3% to $1.078.
The decline was attributed to investor apprehension surrounding the escalating political crisis in France, leading to a flight to haven assets and decreased risk appetite.
China’s mixed economic data added to the uncertainty, as investors await pivotal central bank decisions this week, which will impact the global economic landscape.
