A global stocks selloff deepened on Monday as concerns grew that the Federal Reserve is behind the curve with policy support for a slowing US economy, sending investors into the safety of bonds. Japanese shares plunged for a third day as traders priced in more domestic rate hikes.
Japan’s Topix index tumbled more than 7%, while the yen rallied over 1% on bets the Bank of Japan will keep raising interest rates after last Wednesday’s hike. Korean and Australian shares slid, while US futures declined by more than 1.5%. With investors concerned the US economy may be in for a hard landing, a rally in Treasuries sent yields to the lowest in more than a year.