Shares in Asia declined in Monday morning trade after a closely-watched signal of potential recession stateside appeared on Friday.
The broad MSCI Asia-ex Japan index fell 0.92 percent to 524.97. The Nikkei 225 in Japan dropped more than 3 percent in the morning as
Over in South Korea, the Kospi declined 1.46 percent .Over in Australia, the ASX 200 fell more than 1 percent in morning trade as almost all the sectors saw losses.
Fears of a recession
Stocks stateside fell sharply on Friday as an inverted yield curve stoked fears that an economic recession is on the horizon. Disappointing economic data released Friday out of Europe, coupled with a downgraded economic outlook from the Federal Reserve, added to those concerns.
The spread between the 3-month Treasury bill and the 10-year note went negative on Friday for the first time in more than a decade. Investors consider this to be a signal that a recession may be coming soon.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.644 after bouncing from lows below 96.3 in the previous session.
The Japanese yen, widely viewed as a safe-haven currency, traded at 110.07 against the dollar after strengthening from lows above 110.6 last Friday. The Australian dollar changed hands at $0.7078 after seeing highs above $0.714 last week.
Oil prices slipped in the morning of Asian trading hours, with the international benchmark Brent crude futures contract shedding 0.31 percent to $66.82 per barrel. U.S. crude futures also declined 0.51 percent to $58.74 per barrel.