Asian stocks joined a global selloff as concern about turmoil in the credit and commodities markets ahead of this week’s Federal Reserve meeting overshadowed a batch of better-than-expected Chinese economic data.

The MSCI Asia Pacific Index dropped 1.4 percent to 127.69 as of 9:05 a.m. in Tokyo, falling for a fifth day in its longest stretch of declines since the measure’s August slump. The Standard & Poor’s 500 Index sank 1.9 percent on Friday as crude traded below $36 a barrel and asset managers were routed after a high-yield mutual fund suspended redemptions. Traders see a 74 percent chance the Fed will increase rates on Dec. 16, futures show.

Third Avenue Management last week said it will liquidate a $788.5 million credit mutual fund and delaying distribution of investor money so it can avoid unloading securities at fire-sale prices. Stone Lion Capital Partners suspended redemptions in its $400 million high-yield fund.

The credit-market turmoil comes on the cusp of one of the most anticipated weeks of the year for investors. Tightening policy would solidify the Fed’s divergence from other major central banks, with policy makers in Europe and Japan still emphasizing measures to support growth.

Source : Bloomberg