2014.03.1704:44:29UTC+00Asia Stocks Continues to Decline on Crimea Vote as Yuan Pulls back

Asian stocks sagged down, continuing the regional index’s sharpest weekly decline since 2012, while bond risk hiked as western nations disputed Crimea’s vote to rejoin Russia. China’s yuan retreated after the government widened its trading band.

The MSCI Asia Pacific Index relinquished 0.4 percent by 11:03 a.m. in Tokyo, led by shares in Japan. Standard & Poor’s 500 Index futures inched down 0.1 percent. The yuan downgraded as much as 0.2 percent to this month’s low of 6.1624 against the dollar, while Chinese shares fluctuated. Tencent Holdings Ltd., China’s largest internet firm, plunged down 4 percent in Hong Kong as e-commerce site Alibaba Group Holding Ltd. began work on a U.S. listing. Indonesia’s rupiah soared 0.9 percent to the topmost since October.

Global stocks gave up $1.4 trillion in worth last week as concern over Russia’s actions in Ukraine’s Crimea and China's slowing economy spooked investors. Preliminary results show that more than 95 percent of voters in Crimea chose to leave Ukraine and become part of Russia in a referendum deemed illegal by the European Union and the U.S. China’s central bank doubled the yuan’s trading band at the weekend as the government promotes a greater role for markets amid slowing development.

“Investors are pretty nervous about the China story at the moment,” Adrian Mowat, Hong Kong-based chief Asia and emerging-market strategist at JPMorgan Chase & Co., said in a Bloomberg TV interview. “This adds to uncertainty. Throw in what’s going on with Crimea, I’d imagine it’s going to be a difficult week for markets.”

‘Dangerous, Destabilizing’

Western countries have threatened to ratchet up penalties versus Russia if it doesn’t back down on annexing Crimea. Russia has deployed about 60,000 troops along the Ukrainian border, the government in Kiev said. The majority of Crimea’s residents are ethnic Russians and President Vladimir Putin states that they are at risk after last month’s ouster of Ukraine’s president Viktor Yanukovych, who was supported by the Kremlin.

The international community “will not recognize the results of a poll administered under threats of violence and intimidation from a Russian military intervention,” the White House said in a statement. “Russia’s actions are dangerous and destabilizing. Military intervention and violation of international law will bring increasing costs for Russia.”

The Nikkei 225 Stock Average relinquished 0.4 percent after pulling back 6.2 percent last week, the largest decrease since June and the weakest move among 14 developed markets recorded by Bloomberg. MSCI’s Asia Pacific measure sagged down 3.5 percent last week, its first slide in five weeks.

Hong Kong

Australia’s S&P/ASX 200 Index surrendered 0.2 percent today. New Zealand’s NZX 50 Index was slightly altered with the Kospi index in Seoul.

Hong Kong’s Hang Seng Index gave up 0.2 percent as Tencent led sagged downs. The China Enterprises measure soared 0.3 percent after hitting its largest weekly decline since October last week.

Alibaba, China’s largest e-commerce firm, has started the process of undertaking a U.S. initial public offering after struggling to get Hong Kong to approve its proposed governance structure, according to a person familiar with the matter.