Investors dumped stocks on Monday and flocked to bond markets to take refuge. The yen hovered near a six-week high as concerns about the U.S. recession intensified, leading to a sharp drop in global bond yields and a cold shoulder on risky assets.
U.S. stock index futures fell, while E-Mini S&P 500 index futures fell 0.5%. The MSCI Mingsheng Asia-Pacific (excluding Japan) index fell 1.4% to a week low, and the region's stock markets fell across the board.
Japan's Nikkei index. N225 fell 3.2% to a two-week low. Korea's Kospi index. KS11 fell 1.6% and Australia's stock market fell 1.3%.
China's stock market also fell, with the Shanghai and Shenzhen 300 index. CSI300 down 0.8%.
On Friday, all three major U.S. stock indexes recorded their worst day since January 3. The Dow Jones industrial index. DJI fell 1.77%, the S&P 500 index. SPX fell 1.90%, and the Nasdaq index. IXIC fell 2.5%.
Concerns about the health of the global economy rose last week after the Fed's cautious stance hit 10-year Treasury yields at their lowest level since early 2018.
The latest offer shows that the yield on the 10-year Treasury bond is 1.9 basis points lower than that on the three-month Treasury bond. It was 0.07 basis points lower in late New York on Friday, the first upside-down since 2007. The upside-down yield curve often indicates an imminent recession.
"Trends in the bond market have alarmed those who are optimistic about the stock market," JPMorgan Chase analysts wrote in a report to clients.
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