Global market crash: From Asian markets to crypto prices, US recession fears jolt financial markets worldwide

India’s stock market benchmark indices Sensex and Nifty 50 saw a sharp sell-off on Monday as global shares rallied amid concerns over the US recession and escalating geopolitical tensions in the Middle East.

Global stock markets fell as the sell-off was fueled by growing concerns that the US economy is slowing and the Federal Reserve is behind the curve on policy support. Data showed the US labor market weakening, prompting a close recession indicator.

“This sell-off is more of a short-term volatility by way of profit-taking and is no indication of any long-term panic mode set in the Indian stocks. For investors looking to enter the stock market, a staggered entry can be considered during volatile periods,” says Tanvi Kanchan, Head – UAE Business & Strategy, Anand Rathi Shares and Stockbrokers.

The repercussions were seen in markets around the world – from Asian stock markets to currency markets to bitcoin prices. Here’s a look at global markets:

Indian stock market

Indian stock market benchmark indices Nifty 50 and Sensex each tumbled more than 3% as selling increased across the board. Sensex traded 2,450.32 points, or 3.03%, lower at 78,531.63, while Nifty 50 tumbled 696.35 points, or 2.82%, to 24,021.35.

Investors almost lost ₹15 lakh crore in a session amid the stock market crash today as the overall market capitalization of the BSE-listed companies fell to nearly ₹442 lakh crore of nearly ₹457 lakh crore in the previous session.

Asian markets

Japan’s stock market tumbled with benchmark indexes down more than 20% from their record highs, confirming a bear market, as selling from last week continued.

The benchmark Nikkei 225 index fell 12.40%, or 4,451.28 points, to 31,458.42 – its biggest point drop in history – while the broader Topix index fell 12.23%, or 310.45 points, fell to 2,227.15.

A resurgent yen weighed on Japanese stock markets. The yen rose to 141.73 against the dollar, a level not seen since early January, from 146.52 yen in New York on Friday.

Among other Asian markets, South Korea’s Kospi fell 8.1% before trading was halted for 20 minutes due to the exchange’s circuit breakers. The Kosdaq fell by 11.71%.

Taiwan’s benchmark, the Taiwan Weighted Index, fell more than 8% amid a selloff in technology and property stocks. Hong Kong’s Hang Seng index fell 1.61%, while mainland China’s CSI 300 fell 0.48%.

US stock futures

US stock futures fell after a decline on Wall Street last week sent the Nasdaq Composite sliding into correction territory. Nasdaq 100 futures tumbled more than 6% and S&P 500 futures fell more than 3%. Futures of Dow Jones fell more than 1%.

Securities market

Indian government bond yields fell on Monday, trailing a sharp decline in US peers amid rising bets of aggressive rate cuts by the US Federal Reserve.

The domestic benchmark 10-year yield was at 6.8597%, the lowest level since March 31, 2022, compared to its previous close of 6.8945%.

US Treasury yields fell on Friday. The US 10-year yield fell to its lowest level since December and had an extended decline in Asian hours on Monday, Reuters reported. It was last at 6.7565% in Asian hours, while the 2-year yield was at 3.8216%.

Currency market

Indian rupee fell to a record low on Monday, weighed down by the stock market crash, as worries about a US recession spurred outflows from local stocks amid a global equity sell-off. The rupee fell to a record low of 83.82 against the US dollar and was last quoted at 83.8125, down about 0.1% from its close of 83.75 on Friday.

Japanese yen, a safe haven and carry funding favorite, traded at 143, 2.3% higher against the dollar, and at levels last seen on Jan. 2, Reuters reported. The yen has gained 10% against the dollar in just over three weeks, driven in part by the Bank of Japan’s interest rate hike last week and an unwinding of yen-funded carry transactions.

Cryptocurrencies

Cryptocurrencies also rallied amid heavy selling amid risk aversion in global markets on Monday, with Bitcoin prices down around 15%.

Top token Bitcoin price was trading 15.5% lower at $51,323.58, adding to a 13.1% decline last week, which was the worst since the period when the FTX exchange imploded. Ethereum price fell 22.3% to $2,262. Most other major cryptocurrencies were deep in the red.

Gold rate today

Gold prices rose on Monday on safe-haven demand as global financial markets are in risk-averse mode. Spot gold rose 0.14% to $2,446.83 an ounce, after falling 1% earlier in the session. U.S. gold futures rose 0.8% to $2,488.50.

MCX gold rate traded 0.19% higher today at ₹69,925 per 10 grams, while MCX silver price by 0.39% to ₹82 168 per kg.

(With input from Reuters)

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