Asia stocks slump as bond market signals recession
Asian stock markets skidded on Thursday following a sharp retreat on Wall Street amid rising fears of slowing global growth as a closely-watched US financial metric pointed to an increased chance of recession. Japan’s Topix was down 1.3 per cent, erasing gains for the year, while the S&P/ASX 200 in Australia fell 2.6 per cent. Hong Kong’s Hang Seng was 0.2 per cent lower. Overnight, a risk-off tone saw investors shift into government bonds sending the yield on the 10-year US Treasury briefly below that of the two-year.
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