Asia close: Risk aversion hits stocks across the region

(Sharecast News) - Stocks across the Asia Pacific region experienced sharp falls on Thursday, tracking losses overnight on Wall Street. In the background, 10-year U.S. Treasury note yields neared the psychological 5.0% mark - and their loftiest level since July 2007 - even as gold futures extended their recent rebound on geopolitical concerns.

All of the above transpired against the backdrop of intense diplomatic efforts to contain the conflict in Israel.

The Nikkei-225 fell 1.91% to 31,430.62, while the Shanghai Stock Exchange's Composite index retreated 1.74% to 3,005.39.

Hong Kong's Hang Seng fared worse, with investors drawing it down by 2.46% to 17,295.89 led by losses for consumer and technology names.

Market talk ascribed part of the selling to property developer credit crisis.

Analysts at SP Angel noted a report citing three FT editors according to which the firm had missed the final deadline for a coupon payment on a U.S. dollar bond.

The company also reportedly denied that its founder and chairman had left China.

America's Greenback however continued to shy from pushing higher with the US dollar index keeping below the 107.0 mark.

Worth noting in that regard, Federal Reserve chairman was due to deliver remarks on Thursday afternoon.

There was also some market commentary to be seen regarding an increasing likelihood of possible intervention in FX markets by the Bank of Japan.

Japan's trade balance unexpectedly swung into the green in September for the first time in three months, as exports climbed by a larger-than-expected 4.3% year-on-year and imports dropped 16.3%.