Equity Rout Continues, Japan Stocks 20% Off July Highs

Japan equities fell sharply enough to trigger a circuit breaker in the first part of trade on Monday. Topix and Nikkei losses got to 6-7% range. The Nikkei also sits more than 20% off its July high, so has corrected into bear market territory.

• Nasdaq futures were off 2% at one stage, as we continue to see global tech underperform. This is weighing on Japan equity performance as the continued rise in the yen.
• JGB futures also triggered a circuit breaker after surging in opening trade.
• These trends look to be a carry over from Friday's risk off, as the weaker US data in terms of the unemployment rose fed recession fears.
• Headlines earlier of US Secretary of State Blinken warning of an attack on Israel (to the G7) hasn't helped the risk mood, although oil prices sit off earlier highs.
• For US Tsys, the 10yr future has made fresh highs.
• In the FX space, yen gains dominate, up 0.75% against the USD. USD/JPY last near 145.40, back to early January levels. CHF is also rallying, while AUD and NOK are down 0.30-0.40%.