Global Stock Rout Intensifies, Powering Bond Rally

(Bloomberg) — A global stocks sell-off deepened on Monday as concerns grew that the Federal Reserve is behind the curve with policy support for a slowing U.S. economy, sending investors into the safety of bonds. Japanese shares plunged as traders priced in more domestic rate hikes.

The Topix and Nikkei indexes were on the verge of a bear market, with the former set for a three-day decline that would be the worst since the 2011 Fukushima nuclear meltdown. The yen rallied over 2% against the dollar. A gauge of regional shares slumped the most in over four years and set to erase this 2024’s gains. U.S. index futures also declined.