VOA News | Monday, August 5, 2024
Japan stocks plunge, leading global market sell-off

Seoul, South Korea — Japanese stock markets plummeted Monday, with Japan’s Nikkei 225 index suffering its largest single-day point drop in history, driven by fears of a strengthening yen and a possible recession in the United States. In a sell-off that was mirrored in markets throughout Asia, the Nikkei ended the day down a staggering 12.4% – drawing comparisons to the “Black Monday” stock market crash of 1987. Trading in Japan was suspended to prevent panic selling after the decline triggered circuit breakers designed to contain severe market drops. The frenzy also activated circuit breakers in South Korea, where the main market finished nearly 9% lower. In Taiwan, stocks plunged more than 8% – the worst single-day percentage drop in the island’s history. Shares of Taiwan Semiconductor Manufacturing Company — the world’s largest chipmaker – fell nearly 10%. European markets also declined sharply at the start of trading as did U.S markets. U.S. stock futures also fell, an indication that the volatility will continue in U.S. markets on Monday. The sell-off was a continuation from Friday, when the United States posted a worse than expected jobs report. Some investors are also concerned that the U.S. Federal Reserve may have acted too slowly in lowering interest rates that have been elevated in an attempt to reduce inflation. Another worry is geopolitical tensions in the Middle East, after…Read more