Asian stocks fell sharply on Monday, pressured by a Wall Street selloff, renewed concerns over China's property sector and a broader pullback from risk ahead of a week packed with major central bank decisions and key economic data. MSCI's broad Asia-Pacific index excluding Japan dropped 1.2 per cent, led by losses of up to 2.7 per cent in South Korean equities. The selloff followed weakness in US markets, although S&P 500 e-mini futures later edged 0.3 per cent higher. The yield on the US 10-year Treasury slipped to 4.17 per cent as investors awaited a backlog of US economic releases delayed by the government shutdown. China-related concerns added to pressure after official data showed factory output and retail sales growth slowed further in November, while new home prices extended their decline. The offshore yuan firmed slightly against the dollar. Property developer China Vanke said it would hold a second bondholder meeting after failing to secure approval to extend a bond payment due Monday, reviving fears of a possible default and broader stress in the sector. Attention is now turning to central bank meetings this week. The Bank of Japan is expected to raise interest rates, while the Bank of England may cut rates. The European Central Bank, Sweden's Riksbank and Norway's Norges Bank are all expected to keep policy unchanged. Japanese stocks outperformed after the Bank of Japan's tankan survey showed business sentiment among large manufacturers at a four-year high. The Topix rose 0.2 per cent, while the yen strengthened to near a one-week high. The New Zealand dollar slipped after comments from the country's new central bank governor pointed to tighter financial conditions. Cryptocurrency markets also rebounded, with bitcoin up 1.3 per cent and ether gaining 1.5 per cent. Attribution: Reuters
