Investing.com– Asian shares fell sharply on Monday, extending final week’s losses amid rising fears of a U.S. financial slowdown, with Japanese markets set to enter a bear market from their July file highs. 

Markets tracked a hunch in Wall Road on Friday, after considerably weaker-than-expected nonfarm payrolls knowledge ramped up considerations that the Federal Reserve will hold rates of interest excessive for too lengthy for the economic system to see a tender touchdown. Different middling financial readings by way of the week and blended earnings from heavyweight expertise shares additionally battered U.S. markets, offering weak cues to regional shares.

U.S. inventory index futures fell additional in Asian commerce on Monday.

Japan’s Nikkei, TOPIX eye bear market 

Japan’s slid 5.5% on Monday, whereas the broader plummeted practically 7%. Each indexes have been now buying and selling greater than 20% down from file highs hit in July- setting them up to enter a bear market in the event that they closed at present ranges. 

Japanese shares have been battered by a mixture of heavy profit-taking- with international buyers pulling out en-masse because the Japanese yen appreciated sharply.

This development was spurred by hawkish indicators from the Financial institution of Japan, after the central financial institution raised rates of interest final week and flagged extra potential hikes in 2024.

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

Chinese language losses restricted by some optimistic PMI knowledge 

China’s and indexes fell comparatively lower than their friends, provided that they have been already nursing steep losses over the previous two months.

The 2 indexes fell 0.3% and 0.4%, respectively, and remained at greater than five-month lows. Hong Kong’s index fell 1%. 

Non-public on Monday confirmed China’s companies sector grew barely greater than anticipated in July, presenting some resilience within the economic system.

The studying helped barely enhance sentiment in direction of China after dismal readings on the manufacturing sector final week. 

A string of key Chinese language financial readings are due this week, together with and knowledge. 

Asia walloped by progress considerations 

Broader Asian markets tumbled as urge for food for risk-driven shares was dented by the prospect of worsening financial circumstances. Secure havens such because the Japanese yen and gold noticed inflows. 

Australia’s slid 2.5%, with focus turning to a on Tuesday, the place the central financial institution is extensively anticipated to maintain charges regular.

South Korea’s tumbled 5.5%, notching prolonged losses on weak point in expertise shares. The sector was battered by a mixture of profit-taking and middling earnings from main U.S. tech corporations. 

Futures for India’s index pointed to a destructive open, with Indian shares set for extra profit-taking after the Nifty surged to file highs above 25,000 factors final week.