Most Asian stocks drop as S&P 500 futures resume slide

• Asian stocks are on the defensive, tracking losses in the US index futures.
• Treasuries remain bid, the Shanghai Composite index is trading flatlined

The late recovery in the S&P 500 index has failed to put a bid under the Asian stocks.

The S&P 500 gapped lower yesterday and fell to fell to 2,691 - the lowest level since May 29 - only to rise back to 2740 by day's end. So far, however, the late recovery has failed to stabilize the risk sentiment.

At press time, Japan's Nikkei index is reporting a 0.34 percent drop and stocks in Australia and New Zealand are down 0.30 percent and 0.47 percent, respectively. South Korea's Kospi has shed 0.30 percent and Shanghai Composite is trading flat to negative.

Meanwhile, the S&P 500 futures are down 0.26 percent, indicating that risk aversion is here to stay.

Elsewhere, the treasuries are bid on haven demand. As of writing, the 10-year yield is down close to two basis points at 3.15 percent, having hit a low of 3.115 percent yesterday.

The latest bout of risk aversion in the US equities is likely associated wth concerns about the corporate earnings outlook in an environment of rising interest rates.