The Tokyo Stock Exchange ended Monday’s session (5) with the biggest drop in points in its history, affected by the appreciation of the yen and concerns about the US economy, which also caused significant losses in Seoul and Taiwan.
The Nikkei 225, the main index of the Japanese stock market, which closed down 5.8% on Friday, fell 12.4% on Monday, or 4,451.28 points, to close the session at 31,458.42 units, a record low in history, reminiscent of the 1987 crash.
The broader Topix index fell 12.23 percent to 2,227.15 points.
The Japanese currency, which traded at nearly 162 yen per dollar in July, rose on Monday to 141.73 yen per dollar, a level not seen since January. On Friday, the dollar was trading at 146.52 yen in New York.
A stronger yen is a negative factor for Japanese exporters.
The recent rally has been fueled by policy decisions by the Bank of Japan, which last week raised interest rates for the second time in 17 years and said it may do so again soon, while the U.S. Federal Reserve has hinted at a rate cut, possibly as early as September.
“Investor sentiment was hit by weaker-than-expected U.S. employment data for July, raising concerns that the U.S. economy will face a bigger-than-expected slowdown,” brokerage IwaiCosmo Securities said.
Elsewhere in Asia, Taiwan’s Taiex index and Seoul’s KOSPI fell more than 8%.
Chinese stock markets recorded moderate declines: Hong Kong’s Hang Seng Index fell 2.7%, the Shanghai Composite Index 1.4% and the Shenzhen Index 1.8%.
The main European stock markets started the week in decline: Frankfurt fell 3% shortly after opening, Paris fell 2.6% and London 2.3%.
2024-08-05 15:00:16