Asian stocks fell on mounting recession fears
2 years, 6 months ago

Asian stocks fell on mounting recession fears

Live Mint  

Stocks face more losses Friday on deepening fears of an economic downturn as monetary policy tightens to fight damaging inflation. There is “a building expectation that the Bank of Japan will need to amend their policy stance closer to some version of normal” even as the central bank says low rates are still needed, Benjamin Jeffery and Ian Lyngen, strategists at BMO Capital Markets, wrote in a note. Global stocks are headed for their worst week since the pandemic roiled markets back in 2020, one of a range of assets under pressure as rate hikes suck liquidity from global markets. Spreads on US junk-rated corporate bonds -- a gauge of risk that hints at economic worries -- surpassed 500 basis points for the first time since November 2020. The Nasdaq 100 fell 4% Nikkei 225 futures fell 2.4% S&P/ASX 200 futures dropped 2.1% Hang Seng futures declined 1% Currencies The Bloomberg Dollar Spot Index rose 0.1% The euro was at $1.0549 The Japanese yen was at 132.63 per dollar, down 0.3% The offshore yuan was at 6.6895 per dollar, down 0.1% Bonds The yield on 10-year Treasuries declined nine basis points to 3.20% Australia’s 10-year bond yield rose 10 basis points to 4.1% Commodities

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