Nikkei down more than 3%, Hang Seng off nearly 2%
Asian markets plummeted in early trading Monday, amid heightened recession worries.
On Friday, the closely watched yield curve inverted, a key indicator of a potential U.S. recession. That sent global bonds yields plunging. Weak economic data from Europe added to fears of a global economic slowdown. Investors are also awaiting China-U.S. trade talks that are due to resume Thursday in Beijing.
Japan’s Nikkei NIK, -3.15% tumbled more than 3% on Monday. Hong Kong’s Hang Seng Index HSI, -1.78% fell 1.8%, while the Shanghai Composite SHCOMP, -1.37% slid 1.2%. South Korea’s Kospi SEU, -1.64% sank 1.6%, and benchmark indexes in Taiwan Y9999, -1.48% , Singapore STI, -1.42% and Indonesia JAKIDX, +0.36% dropped as well. Australia’s S&P/ASX 200 XJO, -1.19% was off 1.2%.
Among individual stocks, SoftBank 9984, -4.84% fell in Tokyo trading, along with Fast Retailing 9983, -2.30% and Toyota 7203, -2.28% . Tencent 0700, -2.79% tumbled in Hong Kong, as did CNOOC 0883, -3.55% and AIA Group 1299, -2.72% . Samsung 005930, -2.47% and SK Hynix 000660, -3.81% slid in Korea, and BHP BHP, -1.58% and Beach Energy BPT, -5.12% fell in Australia.
Wall Street, which posted losses around 2% on Friday, looked set to continue losses Monday — Dow futures YMM9, -0.40% were last down more than 100 points, and S&P 500 futures ESM9, -0.44% and Nasdaq futures NQM9, -0.69% were sinking as well.