South Korea's market was closed on Thursday for a public holiday.
The 10-year government bond yield fell below 1.6% Wednesday and fell just below the yield on the 2-year government bond. It marked the first time since 2007 that 10-year bond yields fell below 2-year yields. The inversion of this curve has preceded any recession in modern history.
"Bond markets have marked this move for a long time, but the shift was crystallized by yesterday's sentencing and bleak European and Chinese economic data," Stephen Innes, managing partner of Valor Markets Pte in Singapore, wrote in a research note.
Australia's main index was the biggest loser early Thursday. The decline accelerated when Guy Debelle, Deputy Director of the Reserve Bank of Australia, warned about the consequences of the US-China trade war.
"The uncertainty about how the dispute will play out on both the trade and technology fronts means companies are waiting to see how the uncertainty resolves rather than investing," he said, according to the text of the keynote speech to be delivered. at a conference in Sydney on Thursday. "The longer businesses stay, the weaker demand will be, which will further confirm the decision to wait. There is a risk of a self-fulfilling decline."
CNN Business & # 39; Paul R. La Monica contributed to this report.