Asian stocks plummeted as worries about the country’s economic crisis increased in response to poor statistics from China’s services sector.

Real estate companies drove the more than 1% decline in the main index of Hong Kong equities, which led to the decline. According to an industry poll, activity in China’s services sector expanded at the weakest rate this year in August, a warning that the speed of the country’s economic recovery is ebbing. For the first time in seven days, the MSCI Asia Pacific index is about to drop.

“This is a typical after-party reality check that is cooling China’s rally today as the services PMI fell markedly lower than expected, suggesting a further economic downturn,” said Hebe Chen, an analyst at IG Markets Ltd. in Melbourne.

The likelihood of a US recession was lowered by Goldman Sachs Group Inc. Jan Hatzius, chief economist, stated in a company note that “continued good news on inflation and the labor market has led us to lower our estimate of the likelihood of a 12-month recession in the United States to another 15%, which is 5 percentage points below our previous estimate.”

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