Stocks drop as negative economic forecast weighs

Global shares declined on Thursday while bonds and the dollar advanced. Stock markets’ underperformance was mainly from weak U.S. retail sales, inactivity in factory production, and a dire outlook for Asian economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 2.2%, as a Reuters survey showed that majority of investors are not satisfied with the stimulus measures. The Japanese benchmark Nikkei inched down with a 1.3% loss.

The S&P 500 E-Mini futures slipped further with a 0.3% setback. It reached new depths after a 2.2% drop on Wall Street overnight.

U.S. retail sales dropped to a record low in March while factory outputs declined the sharpest in 74 years. These heavy market reversals raised fears that the economy will slide to a recession.

The International Monetary Fund forecasted that the Asian economic growth will diminish down to zero for the first time in six decades. The IMF acknowledged this possibility as exporters suffer from lack of demand and virus restrictions halted business operations.