Asian markets fall after heavy losses in US stocks by Investing.com

Investing.com – Asian markets fell on Monday morning, as Japanese equities lost more than 3% after US stocks fell sharply on Friday.

China and the United States were down 0.9% at 10:15 pm (3:15 GMT). Hong Kong slipped 1.6%.

Japan fell by 3.1% and South Korea by 1.5%.

Australia decreased by 1.2%.

An inverted yield curve, a signal of potential recession under close scrutiny, appeared on Friday and was cited as the catalyst for equity sales.

The yield curve is often interpreted as a powerful predictor of the recession. According to the National Bureau of Economic Research, it has been reversed in the last seven recessions.

The latest collapse came after the publication of weak economic reports in France and Germany, while data showed that US manufacturing growth slowed to its lowest level in 21 months in March.

The last time the gap between the 3 – month Treasury bill and the 10 – year note became negative was in 2006, just before the economic downturn that had started the following year.

Meanwhile, senior US and Chinese officials will meet in Beijing later this week for a new round of trade talks.

Earlier reports suggested that both parties could sign a trade agreement in April.

Brexit developments are also expected to be the focus of attention this week as the British parliament is scheduled to vote Tuesday on the withdrawal agreement of Prime Minister Theresa May, which has been rejected twice this year.

In the United States, a summary of the report of Special Adviser Robert Mueller submitted to Congress Sunday concluded that President Donald Trump and his campaign were not colluding with Russia in the 2016 election.

William Barr, who summarized the report for Congress, said the evidence was not sufficient "to establish that the president had committed an offense of obstructing justice."

Barr warned that "although this report does not conclude that the president has committed a crime, he does not exonerate him either" on the question of the obstruction of justice.

In the past, Trump has repeatedly described the investigation as a witch hunt.

"It's a shame that the country has to endure this," Trump said on Sunday, adding the investigation was an "illegal withdrawal that failed".