• Global Stocks Tumble After U.S. Selloff; Yen Gains

Equities tumbled across the globe after the S&P 500 Index fell the most since Donald Trump’s election, as stocks joined an unwinding of reflation trades amid uncertainty over prospects for the U.S. president’s policies. The yen rose a seventh day as investors sought safety.

Financial and commodity shares led the global selloff as benchmark indexes in Japan and Australia slid the most since early November and European stocks fell for a third day. The S&P 500 sank more than 1 percent for the first time since Oct. 11, while a gauge of emerging-market stocks halted an eight-day rally. A slump in government bond yields continued and the yen reached the highest since November. Gold extended gains while base metals tumbled, with iron ore approaching a bear market.

Volatility in financial markets is soaring after a period of relative calm as concern is mounting that pro-growth U.S. policies won’t sail through Congress. The Republican plan to repeal and replace Obamacare is drawing strong opposition ahead of a crucial floor vote in the House. Top Republicans warned failure to pass a health-care bill on Thursday could imperil tax and spending reforms.

“The reality is setting in that markets have expected too much from Trump,” said Jonathan Ravelas, chief market strategist at Manila-based BDO Unibank Inc. “Investors are recalibrating expectations to reflect the reality that Trump’s pro-growth agenda will not happen overnight but will take time and legislation. Markets have also gone up sharply — that allows for a technical correction.”

Equities until now have largely escaped investors’ efforts to unwind so-called Trump trades. While the dollar has been falling steadily since the beginning of the year, dropping more than 4 percent from a January peak, global stocks have been marching higher. The MSCI All Country World Index reached a record last week while the MSCI Emerging Markets Index closed Tuesday at the highest since June 2015.

“I believe markets do need a good reason to take profits, and here it is, ” Margaret Yang, an analyst at CMC Markets in Singapore, wrote in an email. “This is a healthy step back because too much optimism has been priced in and markets have gone too high and too far.”

Here are the main moves in markets:

Stocks

• The MSCI Asia Pacific Index dropped 1.4 percent as of 8:20 a.m. in London, the most since mid-December. Japan’s Topix lost 2.1 percent, the biggest loss since Trump’s election. The selloff came despite data showing Japan’s exports rose the most in two years in February. Australia’s S&P/ASX 200 fell 1.6 percent, also the most since November.
• The MSCI Emerging Markets Index dropped for the first time in nine days, down 0.8 percent. The Hang Seng Index dropped 1.1 percent, while a measure of Chinese shares traded in Hong Kong lost 1.8 percent after closing at the highest in almost 17 months on Tuesday.
• The Stoxx Europe 600 fell 0.8 percent, slumping for a third day with banks leading declines.
• Futures on the S&P 500 fell 0.1 percent. The benchmark index tumbled 1.2 percent to the lowest since Feb. 14 on Tuesday. Banks sank 2.9 percent for the steepest slide since June 24, the day after the U.K. vote to leave the European Union.

Currencies

• The Bloomberg Dollar Spot Index was flat, following a five-day decline.
• The yen strengthened 0.3 percent to 111.37 per dollar, extending its longest winning streak since mid-January. The Australian dollar slipped 0.3 percent.
• The British pound increased less than 0.1 percent after jumping 1 percent Tuesday as U.K. inflation accelerated more than forecast to break through the Bank of England’s target for the first time since 2013. The euro slipped less than 0.1 percent to $1.0804 after climbing 0.7 percent in the previous session.

Bonds

• The yield on 10-year Treasury notes declined one basis point to 2.41 percent, after sliding four basis points in each of the past three sessions.
• Australian 10-year yields dropped five basis points to 2.76 percent. New Zealand equivalent rates retreated two basis points to 3.20 percent.

Commodities

• West Texas Intermediate oil fell 0.5 percent to $47.98, dropping for a third day as U.S. crude supplies are forecast to climb.
• Iron ore retreated, with futures for September delivery falling more than 6 percent.
• Copper lost 0.7 percent following a 1.8 percent drop in the previous session amid signs supplies are returning. Disruptions caused the metal to surge last month to the highest level since 2015. Nickel fell 1.9 percent.