Asian Market Wrap:
Asian Market Wrap: Risk aversion has gripped markets, with investors continuing to dump stocks and seek safety in bond markets. The slump in yields is in turn fuelling fears that the world economy is sliding into recession, especially after the Fed's dovish turn left markets wondering of central banks expect more of a downturn than markets had priced in up to then. Weak PMI readings last week only added to fears of a global slowdown and 10-year Treasury yields dropped a further -0.4 bp to 2.435% overnight. JGB yields fell back -1.6 to -0.096% the weakest since the JGB's policy overhaul in September 2016, and Australia's 10-year yield plunged to a record low of 1.754% before moving back up slightly to now 1.777% - still down -5.3 bp on the day. Stock markets meanwhile sold off, with Topix and Nikkei down -2.45% and -3.01% respectively. The Hang Seng is currently down -2.03%, Shanghai Comp and CSI 300 down -1.86% and -1.45% respectively, while the ASX lost -1.11%. U.S. and European futures are also heading south and the front end WTI future is trading at USD 58.52 per barrel.