Asian stocks tumble on recession fears; Japanese shares eye bear market By

-- Asian stocks fell sharply on Download the formal platform for buying ups and downsMonday, extending last week’s losses amid growing fears of a U.S. economic slowdown, with Japanese markets set to enter a bear market from their July record highs. 

Markets tracked a slump in Wall Street on Friday, after substantially weaker-than-expected nonfarm payrolls data ramped up concerns that the Federal Reserve will keep interest rates high for too long for the economy to see a soft landing. Other middling economic readings through the week and mixed earnings from heavyweight technology stocks also battered U.S. markets, providing weak cues to regional stocks.

U.S. stock index futures fell further in Asian trade on Monday.

Japan’s Nikkei, TOPIX eye bear market 

Japan’s slid 5.5% on Monday, while the broader plummeted nearly 7%. Both indexes were now trading more than 20% down from record highs hit in July- setting them up to enter a bear market if they closed at current levels. 

Japanese stocks were battered by a mix of heavy profit-taking- with foreign investors pulling out en-masse as the Japanese yen appreciated sharply.

This trend was spurred by hawkish signals from the Bank of Japan, after the central bank raised interest rates last week and flagged more potential hikes in 2024.

Middling earnings from heavyweight automaker Motor (NYSE:) Corp (TYO:) set a dour tone for Japanese markets, with a slew of key earnings from the country due this week. Sony Corp (TYO:) and SoftBank Group Corp. (TYO:) are set to report in the coming days.

Chinese losses limited by some positive PMI data 

China’s and indexes fell relatively less than their peers, given that they were already nursing steep losses over the past two months.

The two indexes fell 0.3% and 0.4%, respectively, and remained at more than five-month lows. Hong Kong’s index fell 1%. 

Private on Monday showed China’s services sector grew slightly more than expected in July, presenting some resilience in the economy.

The reading helped slightly improve sentiment towards China after dismal readings on the manufacturing sector last week. 

A string of key Chinese economic readings are due this week, including and data. 

Asia walloped by growth concerns 

Broader Asian markets tumbled as appetite for risk-driven stocks was dented by the prospect of worsening economic conditions. Safe havens such as the Japanese yen and gold saw inflows. 

Australia’s slid 2.5%, with focus turning to a on Tuesday, where the central bank is widely expected to keep rates steady.

South Korea’s tumbled 5.5%, notching extended losses on weakness in technology stocks. The sector was battered by a mix of profit-taking and middling earnings from major U.S. tech firms. 

Futures for India’s index pointed to a negative open, with Indian stocks set for more profit-taking after the Nifty surged to record highs above 25,000 points last week. 

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