Asian markets roiled by recession fears after Wall Street sell-off

Posted Thursday, 15 August 2019 ‐ CNN

Hong Kong (CNN Business)Asian markets were roiled by recession fears Thursday. Several major indexes all dropped at the open, following Wall Street's worst day of the year. Hong Kong's Hang Seng Index (HSI) was down 0.5%, while China's Shanghai Composite Index (SHCOMP)slid 1.1%. Japan's Nikkei (N225) tumbled 1.3%. All of those indexes were down even further earlier. Australia's S&P/ASX 200 erased 2.3%. Losses deepened even more after a top Australian central banker warned that the US-China trade war is damaging global growth and risks a "self-fulfilling downturn."South Korea's market was closed on Thursday for a public holiday.Thursday's sell-off came after US markets plummeted in the worst day for stocks there of 2019. That happened because the bond market, for the first time in over a decade, flashed a warning signal that has an eerily accurate track record for predicting recessions.The 10-year Treasury bond yield fell below 1.6% Wednesday, dropping just below the yield of the 2-year Treasury bond. It marked the first time since 2007 that 10-year bond yields fell below 2-year yields. The inversion of that curve has preceded every recession in modern history. Investors were spooked Wednesday because of some bad news out of Germany and China. Germany's economy shrank in the second quarter. One analyst called Wednesday's report "the end of a golden decade for the German economy."China, meanwhile, posted its worst growth for industrial production in 17 years. The metric is important because it measures the output of key businesses in China's manufacturing, mining and utilities sectors."Bond markets have been flagging this move for some time, but the shift was crystallised by yesterdays run of doom and gloom European and Chinese economic data," wrote Stephen Innes, managing partner for Valour Markets Pte in Singapore, in a research note.Australia's major index was the biggest loser early Thursday. Declines accelerated as Guy Debelle, the deputy governor of the Reserve Bank of Australia, warned of the ramifications of the US-China trade war. "The uncertainty as to how the dispute will play out on both the trade and technology fronts means businesses are waiting to see how the uncertainty resolves rather than invest," he said, according to the text of his keynote speech to be delivered at a conference in Sydney on Thursday. "The longer businesses hold off, the weaker demand will be, which will further confirm the decision to wait. That runs the risk of a self-fulfilling downturn."CNN Business' Paul R. La Monica contributed to this report.

Other articles published by CNN

Posted Saturday, 24 August 2019 ‐ CNN

New Delhi (CNN Business)The man who implemented India's biggest economic reforms of the 21st century has died. Arun Jaitley, who served as India's finance minister for the last five years, passed away on Saturday in New Delhi. He was 66. Jaitley took...

Posted Saturday, 24 August 2019 ‐ CNN

Clearwater, Florida (CNN)The man who fatally shot Markeis McGlockton in a controversial "stand your ground case" was found guilty by a jury Friday night, and McGlockton's family says they can now begin to heal.After six hours of deliberation, a jury...

Posted Saturday, 24 August 2019 ‐ CNN

Hong Kong (CNN)Earlier this month, Hong Kong's protesters brought the city's airport to a standstill. Now, as another weekend of demonstrations begins, the city's famously efficient subway has pre-emptively shuttered some of its own stations -- angering...

Posted Saturday, 24 August 2019 ‐ CNN

(CNN)The Paradise High School Bobcats had their season stolen from them last year. The team in Northern California missed the playoffs for reasons out of their control after the Camp Fire destroyed the town of Paradise in the span of two and a half weeks ...

Posted Saturday, 24 August 2019 ‐ CNN

(CNN)Six people were injured in a prison riot in San Diego Friday night, according to a Cal Fire spokesman.The riot took place at the Richard J. Donovan Correctional Facility, Capt. Thomas Shoots told CNN."Approximately 100 inmates were in the yard at...

Posted Saturday, 24 August 2019 ‐ CNN

(CNN)Taras Petryshyn started out in Clifton Public Schools as a high school student, then a custodian. Now, he's about to start his first school year as an assistant principal in the same district. "I cannot really explain how special it is," he told...

Posted Saturday, 24 August 2019 ‐ CNN

(CNN)As politicians on Capitol Hill clashed over immigration, Corbin Kunst had a different struggle ahead of him: successfully crossing the Mexico-US border hundreds of feet in the air.The government had been shut down for a historic 35 days, in a...

Posted Saturday, 24 August 2019 ‐ CNN

Washington (CNN)The dangerous new twist in the tariff war between the United States and China will heap ominous pressure on the global economy at a moment when it is already struggling in the undertow of their trade superpower showdown.China's...

Posted Saturday, 24 August 2019 ‐ CNN

Biarritz, France (CNN)This weekend, Boris Johnson makes his leadership debut on the world stage at the G7 in the French resort of Biarritz.It is a moment the UK Prime Minister has cherished since childhood. And, in the eyes of many Brits, he has gambled...

Posted Saturday, 24 August 2019 ‐ CNN

Johannesburg, South Africa (CNN)"Why do you shoot the animals?" I asked through an interpreter.The Murle hunter, a semi-automatic weapon slung over his shoulder, definitely didn't appreciate my question.We were in Boma in South Sudan, close to the border ...

Posted Saturday, 24 August 2019 ‐ CNN

(CNN)The office of an African American diversity change agent at the Department of Education was vandalized this week, department employees told CNN on Friday.One employee said the woman's diploma had been knocked down and that some figurines in her...

Posted Saturday, 24 August 2019 ‐ CNN

(CNN)NASA is examining a claim that an astronaut improperly accessed the bank account of her estranged spouse from the International Space Station, The New York Times reported Friday -- potentially the first criminal allegation from space. NASA...

Posted Saturday, 24 August 2019 ‐ CNN

Hong Kong (CNN)A United Kingdom consular worker who was detained in China for 15 days has returned to Hong Kong, according to his family.Simon Cheng was detained by Chinese authorities after traveling to the mainland Chinese city of Shenzhen, two weeks...

Posted Saturday, 24 August 2019 ‐ CNN

(CNN)Obi-Wan Kenobi will bring the Force to Disney+, which -- along with the first trailer for "The Mandalorian" -- capped the studio's presentation for its new streaming service at the D23 Expo.Ewan McGregor -- who played the Jedi Knight in three "Star...

Posted Saturday, 24 August 2019 ‐ CNN

Hanover, New Hampshire (CNN)During a town hall Friday afternoon, former Vice President Joe Biden asked a New Hampshire audience to imagine what it would have been like if Barack Obama had been assassinated when he became the Democratic nominee for...