U.S. equity futures and Asian stocks fell Monday amid a slump in Hong Kong property developers and jitters before a Federal Reserve meeting that’s expected to hint at moving toward paring stimulus.
The dollar rose. U.S. and European contracts dropped after the S&P 500 slid the most in a month, a test for the buy-the-dip mentality as the gauge jabs at its 50-day moving average.
Hong Kong shares tumbled, with a report suggesting Beijing could widen its crackdown on private industries to the city’s real-estate firms. Investors are also tracking the risk of contagion from the debt crisis at developer China Evergrande Group, which was on track to close at a record low market value. A Hong Kong gauge of property shares sank.
The offshore yuan declined. Australia’s stocks and currency weakened as iron ore extended losses below $100 a metric ton. Ten-year Treasury yields have risen ahead of the Fed meeting this week where policy makers are expected to start laying the groundwork for paring stimulus.
Japan and China are among key Asian markets closed for holidays. There’s no cash Treasuries trading in Asia.
