Asian markets tumble on recession fears, Nikkei slides 3%

Shares tumbled in Asia on Monday after Wall Street ended last week with a broad retreat, while Thailand’s market saw a moderate loss following a general election that appeared likely to keep the incumbent, junta-backed prime minister in power. Japan’s Nikkei 225 stock index NIK, -3.01% skidded 3.1%, while the Shanghai Composite index SHCOMP, -1.97%   declined 1.4%. The Hang Seng in Hong Kong HSI, -2.10% lost nearly 2% and South Korea’s Kospi SEU, -1.92% declined 1.8%. The S&P ASX 200 XJO, -1.11% gave up 1.1%.

Investors are looking ahead to China-U.S. trade talks that are due to resume Thursday in Beijing. 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.

The wave of selling knocked 460 points off the Dow Jones Industrial Average DJIA, -1.77%  and gave the benchmark S&P 500 index SPX, -1.90% its worst day since Jan. 3. The Russell 2000 index RUT, -3.62%  of smaller company stocks fell more than the rest of the market as traders shedded risker assets. Worried investors shifted money into bonds, which sent yields much lower. The yield on the 10-year Treasury TMUBMUSD10Y, +0.14%  dropped to 2.43 percent from 2.54 percent late Thursday, a big move.

Asian markets tumble on recession fears, Nikkei slides 3%, MarketWatch, Mar 25