Markets were mostly lower on Monday.
However, earlier on Monday, the Nikkei 225 rose 0.3 percent.
“Last year, a lot of expectations were priced into U.S. markets, those expectations are being weakened,” said Herald van der Linde, head of Asia equity strategy with HSBC in Hong Kong. “There is doubt about the amount of growth it can generate. That allows some of the money to come back to emerging markets.”
However, John Hussman is seeing something more sinister for the US market.
In his latest article, he wrote that “an additional class of risk signatures, typically active in only a small percentage of historical data, shifted to warning mode” last week. According to Hussman, these signatures have in the past been associated with events such as air-pockets, panics and crashes.