Asian stocks are cratering as global growth concerns intensify

Christophe Pallot/Agence Zoom/Getty Images
  • Asian stocks have fallen heavily in early trade on Monday.
  • US and European stocks were slammed on Friday as concerns about the outlook of the economy intensified.
  • Australian benchmark 10-year bonds yields have fallen to the lowest level on record. 10-year yields in Japan have also hit lows not seen since late 2016.

The rout in European and US stocks from Friday has continued in early Asian trade on Monday.

Here’s the scoreboard at 1.30pm in Sydney.

Australia ASX 200 6115.50 , -1.29%
NZ NZX 50 9502.08 , -0.51%
Japan TOPIX 1573.08 , -2.72%
Shanghai Comp 3079.15 , -0.81%
Shenzhen Comp 1693.42 , -0.44%
HK Hang Seng 28616.63 , -1.71%
Sth Korea KOSPI 2151.29 , -1.63%
Sinagpore STI 3171.04 , -1.28%
Taiwan TAIEX 10501.67 , -1.29%
Philippines PSI 7827.02 , -2.33%
Indonesia JKSE 6452.98 , -1.11%
Malaysia KLCI Index 1652.27 , -0.86%
S&P 500 Futures 2796.5 , -0.51%

The sharp falls reflect growing concern about the outlook for the global economy, sparked by soft PMI data from the Eurozone and United States in March that amplified concerns that the recent slowdown is becoming entrenched.

Japan’s TOPIX is leading the regional losses, undermined by not only concerns about the global economy but also a sharp rally in the Japanese yen, an outcome that will weigh on corporate profits for those firms reliant upon earnings from abroad.

Many other markets are down more than 1%, including in Australia and Hong Kong.

The early move in Asia mirrors similar declines in US and European stocks on Friday. The Dow, S&P 500 and Nasdaq all shed more than 1.75%. Losses in Europe, where global growth concerns are the most acute at present, were even larger during the session.

US S&P 500 futures have shed an additional 0.5% upon the resumption of trade on Sunday evening, indicating that losses may extend when physical markets open later in the session

However, while stocks are getting pummelled, government bonds remain in high demand.

Benchmark 10-year yields in Australia have fallen to record lows while those in Japan currently sit at levels not seen since late 2016, a period when global growth concerns were last elevated.

US 10-year yields have also fallen back having risen modestly earlier in the session.

United States 2.436% , -0.020%
Japan -0.096% , -0.009%
Australia 1.767% , -0.079%

“With investors dumping stocks on Friday and running to the apparent safety of G7 bond markets, it’s hard to see anything but a sea of red this morning in Asia Pacific,” said Jeffrey Halley, Senior Market Analyst and OANDA.

“Things may calm down if we feel some good vibrations from the trade talks in Beijing later this week, but it could be a rocky few days to start.”

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.