Concerns about the state of the U.S. economy are having an impact on the Japanese stock market and stock indices in Asia.
Japanese stocks posted their biggest losses since October 1987, extending last week’s sell-off. The Nikkei stock average fell 10.01%, or 3,595.30 points, to 32,314.40 points, the lowest in months. The index has fallen sharply from its peak in July and is on track for its biggest two-day decline on record.
BREAKING: Japan’s stock market, the Nikkei 225, is currently set to post its largest 2-day drop in history.
This is an even larger drop than the Black Monday crash of 1987, per Zerohedge.
Now, South Korea has halted ALL sell orders as markets crash.
Panic selling has arrived. pic.twitter.com/eoxEeaxIh8
— The Kobeissi Letter (@KobeissiLetter) August 5, 2024
U.S. stocks went through a sell-off for a second straight session on Friday after a weak jobs report raised fears of a looming recession and expectations that the Federal Reserve will cut interest rates significantly in September.
The prospect of lower interest rates weighed on the dollar, boosting the yen. The Japanese currency rose nearly 1% to 145.11 per dollar after hitting its highest since mid-January at 144.76.
Meanwhile, Indian stocks fell about 2% in their strongest daily decline in two months, and Taiwan’s benchmark slumped 7.9% to its lowest level since late April. South Korean shares lost more than 5%, their worst decline since March 2020. In Southeast Asia, Singapore’s benchmark fell 3.6%, while stocks in Indonesia and the Philippines lost about 2%.
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