Asian stocks are brought down by an anxiety attack

On Monday, Asian shares dropped with market participants rattled by soaring bond yields as well as talk that the Federal Reserve might be serious regarding raising US interest rates already next week.

Reports that the Bank of Japan was considering ways to increase the country’s yield curve, along with rumors that key banks more generally were running short on fresh stimulus options, hit sovereign debt as well as risk appetite globally.

MSCI's broadest index of Asia-Pacific stocks outside Japan edged down 2.2%, pulling away from a 13-month high. It happened to be the greatest daily sag since the frenzy generated by the UK’s vote in late June to abandon the European Union.

Shanghai followed with a drop of about 1.7%, while Australian stocks lost 2.2%.

The Nikkei 225 slumped 1.5% as the Japanese yen firmed because of risk aversion, while yields on 10-year JGBs briefly hit the highest value since March before paring losses.

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