Recession fears set stocks on course for weekly drop

Asian stocks slid toward their worst week in a month-and-a-half on Friday and oil nursed losses, while bonds enjoyed their best bid in weeks as U.S. data and earnings showed signs of weakness.

Overnight figures showed more Americans filing claims for jobless benefits and manufacturing activity in the mid-Atlantic region slumping to its lowest level in nearly three years.

On the heels of other signals that the world’s biggest economy is slowing down, the data helped drag Brent crude futures , a bellwether for global activity, down 2.4% for their steepest single-day drop in five weeks.

U.S. Treasuries rallied, with two-year yields down more than 9 basis points overnight as investors turned for safety and bet the U.S. hiking cycle is all but over.

Early in the Asia day MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.3% lower and down 1% for the week so far, its worst performance since bank stability worries gripped markets in the middle of March.

This report’s information was first seen on REUTERS; to read more, click this link.