GLOBAL MARKETS-Asia shares take breather as Japan's economic growth stalls

SYDNEY Asian shares inched back from one-year peaks on Monday after Japanese data showed the world’s third largest economy hit an air pocket last quarter, while oil prices held onto their recent gains as markets globally made a slow start to the week.

The Nikkei .N225 eased 0.3 percent as Japan’s economic growth effectively stalled in the second quarter on weak exports and business investment, underlining the need for more stimulus.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.2 percent after a strong run.

The index has climbed almost 14 percent since late June when Britain’s vote to leave the European Union triggered a new wave of global policy stimulus, led by aggressive action from the Bank of England.

All this easing has pushed rich-world bond yields dramatically lower and driven investors to seek higher returns in longer-term debt and in emerging markets.

Yields on British 10-year gilts GB10YT=RR have more than halved to all-time lows of 53 basis points, having been up at 1.39 percent just before the Brexit vote.

That has pulled down rates right across Europe, with Spanish yields ES10YT=RR, for instance, falling over 60 basis points to break under 1 percent for the first time ever.

The plunge in returns on bonds has made equities look more attractive in comparison. The Dow .DJI, S&P 500 .SPX and Nasdaq .IXIC all made record closing highs last week for the first time since 1999.

The pan-European STOXX 600…

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