Wall Street’s woes have spread to Asia again.
Stocks in the region plunged Friday, racking up more losses in a brutal week for global markets.
Japan’s Nikkei index sank as much as 3.1% in early morning trading, while Australian stocks were down as much as 1.8%.
The latest falls in Asian markets followed more grim news from Wall Street. The Dow closed down 4.1% Thursday after another volatile trading session.
It was the second time this week that the U.S. index has lost more than 1,000 points in a single day.
The Nikkei is now down 12% from its peak in late January. That means that like the Dow and some European markets, it’s in correction territory, which is defined as a decline of 10% or more from a recent high.
Experts generally agree that the U.S. and other major economies are in good shape. But investors are worried about inflation and the possibility that the Federal Reserve will hike interest rates faster than previously anticipated in order to rein it in.
The yield on 10-year U.S. Treasury bonds hit a four-year high this week. Rising yields in the U.S. government bond market are a decent indicator of fears about inflation.
— Matt Egan contributed to this report.