SINGAPORE, Aug 4 — Asian index futures signaled more losses after tumbling oil prices reignited a selloff in commodities. Bonds in the region tracked Treasuries higher, while Australia’s dollar held losses before an interest-rate review.

Futures on gauges from Japan to Korea fell in recent trading, while US contracts lost 0.1 per cent by 8:41 a.m. in Tokyo following a second day of declines in the Standard & Poor’s 500 Index.

US oil was near its lowest price since March following Brent’s slump below US$50 (RM 192.835) a barrel amid concern Iran will bump up supply once sanctions are lifted. Copper futures were close to a six-year low. New Zealand bonds rose a third day. The Aussie hovered near its weakest level since 2009.

Brent’s rout and concern over the slowdown in China reverberated through commodity markets with metals to crops driving a Bloomberg gauge of raw materials back to a 13-year low. Treasury yields slipped to the lowest in two months on the tumble in energy prices, and as a pullback in US manufacturing boosted the case for keeping rates lower for longer. China imposed limits on equity short selling late yesterday in its latest salvo aimed at quelling stock volatility.

“China and Greece remain problematic and the US Fed is likely to remain at the forefront of investors’ concerns,” Matthew Sherwood, head of investment strategy at Perpetual Ltd., which manages the equivalent of US$24 billion, wrote in an e-mail to clients. “Investors need to ask one simple question: are you confident that the market is ready for the first rise in US rates in the past nine years given that some of the largest losses in history occur when optimism is high, valuations are elevated and earnings-per-share is moderating?”

China limits

Futures on Japan’s Nikkei 225 Stock Average were bid for 20,480 in the Osaka pre-market, from 20,500 at their close in Japan yesterday, while yen-denominated contracts traded in Chicago were down 0.2 per cent to 20,455. Kospi index futures in Seoul lost 0.1 per cent and those on Hong Kong’s Hang Seng Index decreased 0.2 per cent.

Contracts on the FTSE China A50 Index fell 0.4 per cent in most recent trading, with futures on the Shanghai Shenzhen CSI 300 Index foreshadowing a decline of 1.1 per cent. With mainland Chinese stocks dropping for six of the past seven days, regulators announced the short-selling restrictions after markets closed yesterday. Those who borrow shares will have to wait a day to pay back the loans, according to statements.

Futures on Australia’s S&P/ASX 200 Index were little changed in most recent trading, while the Aussie was down 0.2 per cent to 72.73 US cents after sinking as much as 0.7 per cent yesterday. The currency slid to 72.35 cents July 31, its weakest intraday level since 2009.

Aussie rates

Australia is expected to hold key borrowing costs at a record low Tuesday as waning Chinese demand hits the resource- driven economy. Yields on the country’s 10-year bonds fell six basis points, or 0.06 per centage point, to 2.70 per cent in early trading.

New Zealand’s S&P/NZX 50 Index lost 1.2 per cent, retreating from a record high.

US data is being assessed by investors for clues as to the strength of the local economy. The Institute for Supply Management’s manufacturing index slid from a five-month high, fueling concern that without stronger overseas markets and a rebound in business investment, acceleration in factory output may prove difficult to achieve.

“We’re a little worried about global growth with commodities crashing down,” said Randy Warren, who manages more than US$100 million at Exton, Pennsylvania-based Warren Financial Service & Associates Inc. “The Fed’s saying they’re data dependent, but so far you have to look at the data and say, really? You’re thinking about raising rates here? It doesn’t make a lot of sense.”

Oil, copper

Focus will turn later this week to the monthly payrolls report in the US, as the Federal Reserve waits for further signs of a pickup in the labor market before tightening monetary policy.

West Texas Intermediate crude added 0.5 per cent to US$45.40 a barrel after tumbling 4.1 per cent yesterday as Brent slid 5.2 per cent to US$49.52. Copper futures were down 0.2 per cent to US$2.3420 a pound on the Comex in a fourth day of losses, while gold dropped 0.2 per cent to US$1,085.15 an ounce following a 0.8 per cent slump in the spot market.

The Bloomberg Commodity Index slid 1.5 per cent to its lowest level since February 2002 yesterday, while the Bloomberg World Oil & Gas Index of 65 of the leading producers declined 2 per cent to its weakest position in six years. The Bloomberg World Mining Index of the biggest mining stocks fell 1.9 per cent to near its lowest since March 10, 2009. — Bloomberg