Asian equities declined as investors worried about a potential US recession, and moved to offload risk assets.
Equities fall as central banks adjust monetary policy and concerns grow about a potential hard landing for the US economy.
The Nikkei 225 Index fell to seven-month lows as investors contended with the possibility of higher interest rates in Japan.
Asian equities declined on Monday, reflecting the losses on Wall Street from Friday, which were driven by worries about a potential US recession and underwhelming earnings from major tech companies. The rapid adjustment of central banks' monetary policies and growing concerns about a hard landing for the US economy are contributing to the swift equity declines. This situation is tied to weaker US job market data and a larger-than-expected contraction in factory activity, as shown by last week's ISM Manufacturing PMI.
US Nonfarm Payrolls (NFP) increased by 114K in July from the previous month of 179K (revised down from 206K). This figure came in weaker than the expectation of 175K, data showed on Friday. Meanwhile, the US Unemployment Rate rose to the highest level since November 2021, coming in at 4.3% in July from 4.1% in June. Additionally, the US ISM Manufacturing Purchasing Managers Index (PMI) tumbled to an eight-month low of 46.8 in July.
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