Asian stocks sank on Monday and bond yields ticked higher, as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth.
Japan’s Nikkei share index fell 2.78% and South Korea’s Kospi index was down more than 2.9% on Monday, as the yen hit a 20-year high against the dollar.
The dollar hit 135 yen for the first time in two decades, buoyed by a rise in Treasury yields that continued into Tokyo trading.
U.S. stock futures pointed to further losses at the reopening, with the S&P 500 indicating 1.54% lower, after Friday’s 2.91% retreat.
Two-year Treasury yields leaped as high as 3.159% in Tokyo on Monday, a first since December 2007.
The euro slid as low as $1.0479 for the first time since May 19.
Cryptocurrency bitcoin slumped to a one-month low of $25,975.
Crude oil dropped more than $2 on worries about global growth.