Global stocks tumbled on concerns about the U.S. economy and weak tech company earnings. Adding to the mood, Japanese shares plunged on expectations of further monetary tightening at home.

Euro Stoxx 50 futures fell 0.9%, with U.S. futures also falling. In Asia, the Topix fell as much as 5.7%, its biggest drop of 2020. The yen traded near its highest level since March, weighing on Japan’s export-oriented economy. Stocks also fell across Asia, from South Korea to Hong Kong, with shares of artificial intelligence chipmaker SK Hynix falling as much as 10.6%.

Meanwhile, the policy-sensitive two-year Treasury yield hit a 14-month low as expectations for a rate cut from the Federal Reserve rose after the central bank's decision on Wednesday. Swap traders raised their expectations for three rate cuts this year from two.

Data showed that weekly U.S. jobless claims hit a nearly one-year high, while manufacturing contracted. Disappointing earnings outlooks or results from industry giants such as Intel and Amazon led to a decline in technology stocks. The focus will now shift to monthly employment data later on Friday.

What is spooking Japanese investors is the possibility that the Bank of Japan could raise interest rates further. A major policy shift by the Bank of Japan this week makes another rate hike in October very likely and raises the odds for a quarterly rate hike, according to a former executive director in charge of monetary policy.

The MSCI Asia Pacific Index fell as much as 3.1%, its biggest drop in three years, with technology and industrial stocks leading the decline. S&P 500 and Nasdaq 100 futures also fell in Asia. Intel said third-quarter revenue would be disappointing and Amazon forecast profit below analysts' expectations, sending both companies lower in after-hours trading.

The 10-year U.S. Treasury yield extended its decline to below 4%, reflecting stronger demand for safe-haven assets. The two-year yield fell 1 basis point after falling 11 basis points the previous day. Economists expect job growth to slow in the government's July employment report due on Friday. Forecasters expect the unemployment rate to remain at 4.1%.

Elsewhere in Asia, China's central bank policy adviser made a rare criticism of economic policy as overly conservative, urging the government to step up fiscal stimulus to boost inflation. In commodities, oil rose after falling on Thursday on concerns that tensions in the Middle East could affect supply. Elsewhere, gold prices also rose. #暴跌 #股市暴跌