By
Kimberley Kao, Dow Jones Newswires
India's Sensex fell 2.7% to close at 78759.40, following other indexes lower amid a broad equity market selloff.
Weak U.S. manufacturing and jobs data have caused fears of a worse-than-expected U.S. economic slowdown, Nomura research analysts wrote in a note.
The soft U.S. data have raised the chances of larger Fed rate cuts due to growth concerns, "causing investors to question whether the U.S. can engineer a soft landing," they wrote.
Tata Motors fell 7.3%, Adani Ports & Special Economic Zone lost 5.9% and Tata Steel was 5.3% lower. Among the few gainers, Hindustan Unilever rose 0.8% and Nestle India gained 0.6%.
By
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Stock futures were set to decline further on Monday, led by technology stocks, after a big retreat on Friday.
Futures for the Dow Jones Industrial Average lost 770 points, or 1.9%. Futures for the S&P 500 dropped 2.9%, while contracts tied to the tech-heavy Nasdaq Composite plunged 4.5%. All three indexes fell substantially on Friday, with the Nasdaq entering a correction by finishing 10% lower than its peak.
Shares are slumping worldwide as traders are worrying that the U.S. economy could suffer a sharp slowdown after worse-than-expected jobs data last week.
The fear is that any interest-rate cuts from the Federal Reserve may come too late to bolster growth. Japan’s Nikkei index suffered its worst one-day drop since 1987 on Monday.
“Markets were on edge before Friday but a weak payrolls has really escalated a profound move across the globe,” said Deutsche Bank strategist Jim Reid. “The overriding message from today is hold on to your hats.”
Bond yields have moved lower as traders reprice how much the Fed will lower borrowing costs. The rate on the benchmark 10-year U.S. Treasury bond slipped to 3.735% from more than 4% last week, while the yield on the 2-year note was at 3.789%.
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