Asian stocks retreat as oil resumes drop

Concern about the state of China’s economy is dominating global markets in 2016

Futures on the Standard & Poor’s 500 Index slid 0.8 per cent Credit: Bloomberg

Asian stocks sank to a three-year low as oil fell back below $31 a barrel. Chinese equities slid with industrial metals and the Australian dollar, while the yen strengthened.

The MSCI Asia Pacific Index fell 0.5 per cent, reversing a 1.1 per cent advance, as financial and energy shares led declines. The Shanghai Composite Index extended losses after a report that some banks had stopped accepting small-cap shares as collateral on loans.

Futures ...