Japanese Stock Market index suffers worst day since 1987 as global rout intensifies

Fears of a slowdown in the US economy sent stock markets across Europe and Asia plunging on Monday.

The FTSE 100 index opened 2.3% lower in London, while the Euronext 100 fell 3.5%.

They followed sharp falls across Asia with Japan’s Nikkei 225 dropping 12.4% or 4,451 focuses in the greatest fall by focuses ever.

It comes after Friday’s weak jobs data in the Will There Be A ‘House Of The Dragon’ Season 3? Here’s The Really Good News United States raised questions about the world’s largest economy.

In the meantime, since the Bank of Japan raised interest rates last week, the yen has strengthened against the US dollar, making Tokyo stocks more expensive for foreign investors.

Stock markets in India, Australia, Taiwan, South Korea, Hong Kong, and Shanghai all fell.

There has been speculation that the United States is slowing down as a result of a series of weaker-than-anticipated economic data.

While major American companies like Amazon and Intel reported disappointing financial results, the US Federal Reserve, in contrast to other central banks like the Bank of England, delayed cutting interest rates last week.

Official business information showed that US bosses added 114,000 positions in July, far less than anticipated while the joblessness rate ticked up.

M&G Wealth’s chief investment officer, Shanti Kelemen, stated on the BBC’s Today program: There are merely a few indications that the market may be slowing down.

“I feel that additionally scared certain individuals on Friday and you’re likewise seeing the Japanese market was at that point shut when that occurred so you’re seeing Japan respond to those things that happen the week before.”

“The selloff was instigated by the sharp appreciation of the [yen] as global investors turned cautious on Japanese corporate earnings, especially that of exporters such as automakers,” according to Kei Okamura, a portfolio manager at investment firm Neuberger Berman based in Tokyo.

Over the past month, the Japanese yen has increased by more than 10% against the US dollar.

Japanese goods become more expensive as a result of a stronger yen, making them less appealing to potential overseas buyers.

Not at all like other national banks, the Bank of Japan lifted loan fees last week to the most elevated level since the worldwide monetary emergency in 2008.

While the economy contracted in the first three months of the year as a result of a weaker yen and lower household spending, Japan’s inflation rate in June was higher than anticipated.

The main share index in Taiwan and the Kospi in South Korea both lost more than 8% in other parts of the Asia-Pacific region.

The NSE Nifty 50, India’s main index, was down 2.8%, and the S&P/ASX 200, Australia’s, was down about 3.6%.

The Shanghai Stock Exchange was down 1.4%, while the Hang Seng in Hong Kong was down 2.5%.

Also, crypto currencies were down. The lowest point since February for Bitcoin was around $50,000.

Following the disappointing jobs data, which also showed that employment for May and June had been revised down, stocks in New York dropped sharply on Friday.

Concerns that the US’s long-running jobs boom may be ending were raised by the July numbers. It fueled speculation regarding the timing and magnitude of the Federal Reserve’s interest rate cuts.

Despite the most recent data showing that it expanded at an annual rate of 2.8%, there are concerns that the US economy will slow.

Ms Kelemen, boss venture official at M&G Riches, said: ” You can choose the evidence to tell a positive story or a negative story.

“I don’t think it generally focuses to one bearing yet.”

Already troubled by signs that a long-running rally in share prices, fueled in part by optimism over artificial intelligence (AI), might be losing steam, stock markets were concerned about high borrowing costs.

The Nasdaq’s decline on Friday resulted in the index falling by approximately 10% from its most recent peak—a fall that is referred to as a “correction” and has occurred in this instance within a matter of weeks.

The Dow Jones Modern Normal likewise dropped 1.5% on Friday, and the S&P 500 finished 1.8% lower.

Berkshire Hathaway, owned by seasoned investor Warren Buffett, disclosed over the weekend that it had sold approximately half of its stake in Apple, the US technology giant.