Stock markets in serious decline due to fear of possible US entry into recession

(Patria) - Stock markets around the world fell on Monday, and bonds strengthened as fears that the United States could enter a recession prompted investors to flee risky assets.

Japan's main Nikkei stock index fell a staggering 12 percent to its lowest level in nine months, marking its largest single-day percentage drop since October 1987, Reuters reports.

The regional STOXX 600 index fell three percent, and bank stocks slipped just over 4.5 percent. US stock futures were significantly lower, signaling that Wall Street stocks are poised for another sell-off.

In addition to the Japanese stock market, other Asian stock markets are also recording significant losses today as poor US employment data fuels recession fears and hinders global financial markets.

The yen, meanwhile, rose to its highest level against the dollar since January of this year.