Asian stocks stumble amid concern about looming downturn
Investors ditch shares and flee to the safety of bonds while the Japanese yen hovers near a six-week high as risk assets fall out of favour on growing fears about a US recession
Sydney — Investors ditched shares on Monday and fled to the safety of bonds while the Japanese yen hovered near a six-week high as risk assets fell out of favour on growing fears about a US recession, sending global yields plunging. US stocks futures fell, with E-minis for the S&P 500 skidding 0.5%. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.4% to a one-week trough in a broad sell-off in equities in the region. Japan’s Nikkei tumbled 3.2% to the lowest in two weeks, South Korea’s Kospi index declined 1.6% while Australian shares faltered 1.3%. Chinese shares also declined with the blue-chip CSI 300 index down 0.8%. On Friday, all three major US stock indexes clocked their biggest one-day percentage losses since January 3. The Dow slid 1.8%, the S&P 500 was off 1.9% and the Nasdaq dropped 2.5%. Concerns about the health of the world economy heightened last week after cautious remarks by the US Federal Reserve sent 10-year treasury yields to the lowest since ...
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