KUALA LUMPUR, July 18 — Asian stocks fell and the ringgit led declines among emerging-market currencies as investors shunned riskier assets after a Malaysia Airlines plane was downed in Ukraine and Israel sent troops into Gaza. Bonds in the region climbed as crude oil extended its advance.

The MSCI Asia Pacific Index slipped 0.6 per cent by 9:17 a.m. in Tokyo, falling for the first time this week and set for the biggest one-day drop in 1 1/2 weeks. Japan’s Topix gauge slid 1.3 per cent. Standard & Poor’s 500 Index futures lost 0.3 per cent after the US benchmark sank the most in three months. Malaysia’s ringgit weakened 0.5 per cent and Korea’s won lost 0.4 per cent. Ten-year Japanese and Australian bond yields fell at least two basis points as the yen held near a five-month high to the euro. US oil added 0.5 per cent in a third rising day.

Ukraine’s government claimed pro-Russia rebels shot down the passenger jet over disputed territory, killing all 298 people on board, igniting declines in US and European stocks. Separatists denied the accusation, blaming the Ukrainian army. Equities in New York extended losses in the last hour of trading as Israel sent ground forces into Gaza after missile attacks from both sides during the 10-day-old conflict.

“There’s been a huge escalation of geopolitical risk,” Douglas Gordon, a Seattle-based investment strategist at Russell Investment Group, which has about US$280 billion in assets under management, told Bloomberg TV. “There’s a lot of uncertainty that the market has to digest. Markets are going to be very cautious and we’re going to see some flight towards quality.” — Bloomberg