Asian stocks drop sharply on recession fears

Monday, 25. March 2019 07:45

Stocks in Asia traded with sharp losses on Monday as investors fears of an economic recession intensified as a result of weak economic data, as well as the inversion of the yield curve in the United States. On Friday, the spread between the 3-month Treasury bill yield and its 10-year counterpart turned negative for the first time in more than 10 years. Furthermore, data showed that economic activity in the private sector in the US and Europe declined in March with the German manufacturing sector growth hitting the lowest level since 2012.

The Nikkei 225 closed 3.01% lower. The dollar traded flat against the yen to sell for 109.9245 at 7:47 am CET

In China, the Shanghai Composite dropped 1.71% at 7:42 am CET and the Shenzhen Composite fell 0.96% at 7:30 am CET. Hong Kong's Hang Seng tumbled 2.22% at 7:43 am CET.

Korea's Kospi slid 1.90% at 7:25 am CET, while Australia's S&P/ASX 200 ended the session 1.11% in the red.

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Breaking the News / NP