Asian stocks tumbled Monday as a global selloff deepened, with investors fleeing risk assets amid mounting recession fears and uncertainty over the Federal Reserve's interest-rate path. Japan's Nikkei 225 led declines, dropping 3.2%, while Hong Kong's Hang Seng fell 2.8% and South Korea's Kospi slid 2.5%. The rout followed Friday's sharp losses on Wall Street, where the Dow Jones Industrial Average sank 610 points (1.5%) and the S&P 500 lost 1.2%. The Nasdaq Composite dropped 0.8% as megacap tech stocks came under pressure.
Nasdaq futures steadied in early Asian trading, suggesting a pause in the tech-led decline, but Dow futures pointed to another 200-point drop at the open. Traders are pricing in a higher-for-longer rate environment after strong U.S. jobs data last week reduced hopes for near-term Fed cuts. The yen strengthened to 146 per dollar, adding to pressure on Japanese exporters.
China's CSI 300 bucked the trend, rising 0.4% on reports of fresh stimulus measures. However, analysts warn the relief may be short-lived without concrete policy action. Oil prices extended losses, with Brent crude falling below $78 a barrel on demand concerns.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing