In Asian Equity Markets indices fell sharply on Monday morning after disappointing economic data from Europe and a closely-watched signal of potential recession in the U.S. appeared on Friday. Nikkei 225 in Japan fell more than 3 percent in the morning, with shares of index heavyweights Fast Retailing, Softbank Group and Fanuc all falling sharply. Hang Seng index in Hong Kong declined 1.73 percent as shares of Chinese tech giant Tencent fell more than 2.5 percent. Over in South Korea, the Kospi declined 1.53 percent as chipmaker SK Hynix saw its stock fell around 4 percent.

In Currency Markets the yen gained against its peers on Monday, touching a six-week peak versus the dollar, as fears in markets of a global economic slowdown fueled demand for the Japanese currency. The yen, a perceived safe-haven which attracts demand times of market turmoil and political tensions, was 0.15 percent higher at 109.79 to the dollar after brushing 109.70, its strongest since Feb. 8. The euro was nearly flat at $1.1296 . The common currency has lost roughly 0.7 percent on Friday in response to the downbeat German manufacturing survey.

In Commodities Markets oil prices fell on Monday as concerns of a sharp economic slowdown outweighed supply disruptions from OPEC’s production cutbacks and U.S. sanctions on Iran and Venezuela. Brent crude oil futures were at $66.52 per barrel, down 51 cents, or 0.8 percent, from their last close. U.S. West Texas Intermediate (WTI) futures were at $58.42 per barrel, down 63 cents, or 1.1 percent, from their last settlement. Both crude oil price benchmarks have slumped by more than 3 percent since last week hitting their highest since November 2018.

In US Equity Markets stocks sold fell on Friday, with all three major U.S. stock indexes posting their biggest one-day percentage declines since Jan. 3. The S&P 500 lost 1.90 percent, to 2,800.71 and the Nasdaq Composite fell 2.5 percent, to 7,642.67. Of the 11 major sectors in the S&P 500, all but utilities ended the session in the red. Nike Inc shares fell 6.6 percent after the sportswear company’s North American sales fell short of estimates. Tiffany Inc said it expected earnings growth to resume in the second half of the year and affirmed its fiscal 2019 targets, sending its shares up 3.1 percent.

In Bond Markets yields on benchmark U.S. 10-year treasury notes fell further below three-month rates in Asia on Monday, an inversion that has in the past signalled the risk of economic recession. U.S. 10-year treasury yields were last 1.9 basis points (bps) below three-month rates compared to 0.07 bps late on Friday in New York. The yield curve inverted on Friday for the first time since mid-2007. Chicago FED President Charles Evans said on Monday it was a good time for the U.S. central bank to pause and adopt a cautious stance even though the economy remains in a strong position.