Asian shares slump on global growth concerns, U.S. selloff

reuters ^ | Sun Sep 20, 2015 10:55pm EDT | Nichola Saminather

[BenLurkin]

It looks like a continuation of the growth worries that have hampered markets for the last few months now," said Shane Oliver, head of investment strategy at AMP Capital in Sydney.

"European and U.S. shares had sharp falls, after initially benign reactions to the Fed, and this is now flowing through to Asian markets today," he said.

U.S. shares dropped more than 1.3 percent on Friday, after Fed Chair Janet Yellen said on Thursday that the global economic outlook appeared less certain.

U.S. and European debt yields also tumbled, with the policy-sensitive two-year yield US2YT=RR falling to 0.678 after hitting a four-and-a-half year high of 0.819 percent earlier in the week.

The 10-year German Bund yield EU10YT=RR fell 12 basis points to 66 basis points, its biggest one-day drop since early July.

"The monetary-policy-watcher world has now turned decidedly bearish" after the Fed meeting, Evan Lucas, market strategist at trading services provider IG in Melbourne, wrote in a note.

"If emerging market risk, coupled with low-growth European environment is affecting Fed decision making, sentiment uncertainty will amplify," he said.

[familyop]

Financials led this correction.