Global Markets Tumble as US Economy Concerns Intensify

Stocks routed in Asia as markets fret over U.S. economy after weaker than expected jobs report

Japan's benchmark Nikkei 225 stock index plunged 12.4% on Monday in the latest bout of selloffs that are shaking world markets as investors fret over the state of the U.S. economy. The Nikkei closed down 4,451.28 points at 31,458.42. The market's broader TOPIX index fell 12.8% as selling picked up in the afternoon. A report Friday showing hiring by U.S. employers slowed last month by much more than expected has convulsed financial markets, vanquishing the euphoria that had taken the Nikkei to all-times highs of over 42,000 in recent weeks. Stocks tumbled around the world after the employment data fanned worries the U.S. economy could be cracking under the weight of high interest rates meant to tame inflation. Early Monday, the future for the S&P 500 was 1.5% lower and Dow Jones Industrial Average futures were down 0.7%. "To put it mildly, the spike in volatility-of-volatility is a spectacle that underlines just how jittery markets have become," Stephen Innes of SPI Asset Management said in a commentary. "The real question now looms: Can the typical market reflex to sell volatility or buy the market dip prevail over the deep-seated anxiety brought on by this sudden and sharp recession scare?" Worries over the U.S. economy were rippling around the world even though the U.S. economy is still growing and a recession is far from a certainty. The S&P 500's 1.8% decline Friday was its first back-to-back loss of at least 1% since April. The Dow Jones Industrial Average dropped 1.5% and the Nasdaq composite fell 2.4%. Friday's losses dragged the Nasdaq composite 10% below its record set last month. That level of drop is what traders call a "correction." The rout began just a couple days after U.S. stock indexes had jumped to their best day in months after Federal Reserve Chair Jerome Powell gave the clearest indication yet that inflation has slowed enough for cuts to rates to begin in September. Now, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the world's largest economy. A rate cut would make it easier for U.S. households and companies to borrow money and boost the economy, but it could take months to a year for the full effects to filter through. "Specifically, the scenario of higher unemployment constraining spending and further restraining hiring and incomes and economic activity leading to a recession is the feared scenario here," Tan Boon Heng of Mizuho Bank in Singapore said in a report. Investors will be watching for data on the U.S. services sector from the U.S. Institute for Supply Management due later Monday that may help determine if the selloffs around the world are an overreaction, Yeap Jun Rong of IG said in a report. The Nikkei 225 dropped 5.8% on Friday, making this its worst two-day decline ever. Its worst single-day rout was a plunge of 3,836 points, or 14.9%, on a day dubbed "Black Monday" in October 1987. At one point, the benchmark sank as much as 13.4% on Monday. Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The Nikkei is now down 3.8% from a year ago. One factor driving the BOJ to raise rates was prolonged weakness in the Japanese yen, which has pushed inflation to above the central bank's 2% inflation target. Early Monday, the dollar was trading at 142.39 yen, down from 146.45 late Friday and sharply below its level of over 160 yen a few weeks ago. The euro fell to $1.0896 from $1.0923. Shares surged to stratospheric heights earlier this year on frenzied buying of shares in companies expected to thrive thanks to advances in artificial intelligence. The latest setback has hit markets heavily weighted toward computer chipmakers like Samsung Electronics and other technology shares: On Monday, South Korea's Kospi plummeted 9.3% as Samsung's shares sank 11.6%. Taiwan's Taiex also crumbled, losing 8.4% as Taiwan Semiconductor Manufacturing Co., the world's biggest chip maker, dropped 9.8%. Oil prices were little changed. U.S. benchmark crude oil gained 9 cents to $73.61 per barrel while Brent crude was flat at $76.81 per barrel. Elsewhere in Asia, Hong Kong's Hang Seng index lost 2.5% to 16,519.78 and the S&P/ASX 200 in Australia declined 3.8% to 7,637.40. The Shanghai Composite index, which is somewhat insulated by capital controls from other world markets, edged higher but then gave way, losing 1.2% to 2,870.34.

Stocks routed in Asia, tumble in Europe as markets fear U.S. recession in wake of weaker than expected jobs report

Japan's benchmark Nikkei 225 stock index plunged 12.4% on Monday in the latest bout of selloffs that are shaking world markets as investors fret over the state of the U.S. economy. The Nikkei closed down 4,451.28 points at 31,458.42. The market's broader TOPIX index fell 12.8% as selling picked up in the afternoon. European markets plummeted when trading began Monday following the massive selloffs in Asia. Shares fell more than three percent in Frankfurt, Germany while the Paris market lost 2.6 percent and London fell 2.3 percent, Agence France-Presse reported. The Milan market plunged four percent and Madrid gave up 2.8 percent. Darkening the outlook for trading on Wall Street, early Monday futures for the S&P 500 were 2.5% lower and those for the Dow Jones Industrial Average were down 1.6%. A report Friday showing hiring by U.S. employers slowed last month by much more than expected has convulsed financial markets, vanquishing the euphoria that had taken the Nikkei to all-times highs of over 42,000 in recent weeks. Stock markets have mostly been traveling in one direction, higher, with relatively few huge swings in the past year. A bonanza around artificial-intelligence technology helped drive Big Tech stocks higher, while other areas of the market held up amid rising hopes for coming cuts to interest rates by the Federal Reserve. But professional investors have been warning that shakier times may be ahead given uncertainty about how quickly the Fed will cut interest rates and other big questions. Stocks tumbled around the world after the employment data fanned worries the U.S. economy could be cracking under the weight of high interest rates meant to tame inflation. "To put it mildly, the spike in volatility-of-volatility is a spectacle that underlines just how jittery markets have become," Stephen Innes of SPI Asset Management said in a commentary. "The real question now looms: Can the typical market reflex to sell volatility or buy the market dip prevail over the deep-seated anxiety brought on by this sudden and sharp recession scare?" Worries over the U.S. economy were rippling around the world even though the U.S. economy is still growing and a recession is far from a certainty. The S&P 500's 1.8% decline Friday was its first back-to-back loss of at least 1% since April. The Dow Jones Industrial Average dropped 1.5% and the Nasdaq composite fell 2.4%. Friday's losses dragged the Nasdaq composite 10% below its record set last month. That level of drop is what traders call a "correction." The rout began just a couple days after U.S. stock indexes had jumped to their best day in months after Federal Reserve Chair Jerome Powell gave the clearest indication yet that inflation has slowed enough for cuts to rates to begin in September. Now, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the world's largest economy. A rate cut would make it easier for U.S. households and companies to borrow money and boost the economy, but it could take months to a year for the full effects to filter through. "Specifically, the scenario of higher unemployment constraining spending and further restraining hiring and incomes and economic activity leading to a recession is the feared scenario here," Tan Boon Heng of Mizuho Bank in Singapore said in a report. Investors will be watching for data on the U.S. services sector from the U.S. Institute for Supply Management due later Monday that may help determine if the selloffs around the world are an overreaction, Yeap Jun Rong of IG said in a report. The Nikkei 225 dropped 5.8% on Friday, making this its worst two-day decline ever. Its worst single-day rout was a plunge of 3,836 points, or 14.9%, on a day dubbed "Black Monday" in October 1987. At one point, the benchmark sank as much as 13.4% on Monday. Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The Nikkei is now down 3.8% from a year ago. One factor driving the BOJ to raise rates was prolonged weakness in the Japanese yen, which has pushed inflation to above the central bank's 2% inflation target. Early Monday, the dollar was trading at 142.39 yen, down from 146.45 late Friday and sharply below its level of over 160 yen a few weeks ago. The euro fell to $1.0896 from $1.0923. Shares surged to stratospheric heights earlier this year on frenzied buying of shares in companies expected to thrive thanks to advances in artificial intelligence. The latest setback has hit markets heavily weighted toward computer chipmakers like Samsung Electronics and other technology shares: On Monday, South Korea's Kospi plummeted 9.3% as Samsung's shares sank 11.6%. Taiwan's Taiex also crumbled, losing 8.4% as Taiwan Semiconductor Manufacturing Co., the world's biggest chip maker, dropped 9.8%. Oil prices were little changed. U.S. benchmark crude oil gained 9 cents to $73.61 per barrel while Brent crude was flat at $76.81 per barrel. Elsewhere in Asia, Hong Kong's Hang Seng index lost 2.5% to 16,519.78 and the S&P/ASX 200 in Australia declined 3.8% to 7,637.40. The Shanghai Composite index, which is somewhat insulated by capital controls from other world markets, edged higher but then gave way, losing 1.2% to 2,870.34.

Japan's Nikkei 225 index plunges as world markets react to US economy fears | BreakingNews.ie

Japan's benchmark Nikkei 225 stock index has plunged 12.4 per cent in the latest bout of sell-offs to shake world markets as investors fret over the state of the US economy. The Nikkei closed down 4,451.28 points at 31,458.42 on Monday. The market's broader TOPIX index fell 12.8 per cent as selling picked up in the afternoon. A report that showed hiring by US employers slowed last month by much more than expected has convulsed financial markets, countering the euphoria that had taken the Nikkei to all-times highs of over 42,000 in recent weeks. The Nikkei 225 dropped 5.8 per cent on Friday, making this its worst two-day decline ever. Its worst single-day rout was a plunge of 3,836 points, or 14.9 per cent, on a day dubbed "Black Monday" in October 1987. At one point, the benchmark sank as much as 13.4 per cent on Monday. Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The Nikkei is now down 3.8 per cent from a year ago. One factor driving the BoJ to raise rates was prolonged weakness in the Japanese yen, which has pushed inflation to above the central bank's 2 per cent inflation target. Early on Monday, the dollar was trading at 142.39 yen, down from 146.45 late on Friday and sharply below its level of more than 160 yen a few weeks ago. Shares surged to stratospheric heights earlier this year on frenzied buying of shares in companies expected to thrive thanks to advances in artificial intelligence. The latest setback has hit markets heavily weighted toward computer chipmakers like Samsung Electronics and other technology shares: on Monday, South Korea's Kospi plummeted 9.3 per cent as Samsung's shares sank 11.6 per cent. Taiwan's Taiex also crumbled, losing 8.4 per cent as Taiwan Semiconductor Manufacturing Co, the world's biggest chip maker, dropped 9.8 per cent. Stocks tumbled around the world on Friday after weaker than expected employment data fuelled worries the US economy could be cracking under the weight of high interest rates meant to tame inflation. Early on Monday, the future for the S&P 500 was 1.5 per cent lower and that for the Dow Jones Industrial Average was down 0.7 per cent. Stephen Innes of SPI Asset Management, said: "To put it mildly, the spike in volatility-of-volatility is a spectacle that underlines just how jittery markets have become. "The real question now looms: Can the typical market reflex to sell volatility or buy the market dip prevail over the deep-seated anxiety brought on by this sudden and sharp recession scare?" The VIX, an index that measures how worried investors are about upcoming drops for the S&P 500, fell about 26 per cent as of early Monday. Bitcoin which recently had surged to nearly 70,000 dollars, was down 14 per cent at 54,155.00 dollars. Oil prices were little changed. US benchmark crude oil gained nine cents to 73.61 dollars per barrel while Brent crude was flat at 76.81 dollars per barrel. Yeap Jun Rong of IG said investors will be watching for data on the American services sector from the US Institute for Supply Management due later on Monday that may help determine if the sell-offs around the world are an overreaction. Worries over weakness in the US economy and volatile markets have rippled around the world, even though the US economy is still growing, and a recession is far from a certainty. Elsewhere in Asia, Hong Kong's Hang Seng index lost 2.5 per cent to 16,519.78 and the S&P/ASX 200 in Australia declined 3.8 per cent to 7,637.40. The Shanghai Composite index, which is somewhat insulated by capital controls from other world markets, edged higher but then gave way, losing 1.2 per cent to 2,870.34. The S&P 500's 1.8 per cent decline on Friday was its first back-to-back loss of at least 1 per cent since April. The Dow Jones Industrial Average dropped 1.5 per cent, and the Nasdaq composite fell 2.4 per cent. Friday's losses dragged the Nasdaq composite 10 per cent below its record set last month. That level of drop is what traders call a "correction". The rout began just a couple days after US stock indexes had jumped to their best day in months after US Federal Reserve Chair Jerome Powell gave the clearest indication yet that inflation has slowed enough for cuts to rates to begin in September. Now, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the world's largest economy. A rate cut would make it easier for US households and companies to borrow money and boost the economy, but it could take months to a year for the full effects to filter through. Tan Boon Heng of Mizuho Bank in Singapore said in a report: "Specifically, the scenario of higher unemployment constraining spending and further restraining hiring and incomes and economic activity leading to a recession is the feared scenario here."

Japan's Nikkei 225 index plunges 12.4% as world markets tremble over risks to the US economy

Japan's benchmark Nikkei 225 stock index plunged 12.4% on Monday in the latest bout of sell-offs that are shaking world markets as investors fret over the state of the U.S. economy. The Nikkei closed down 4,451.28 points at 31,458.42. The market's broader TOPIX index fell 12.8% as selling picked up in the afternoon. A report showing hiring by U.S. employers slowed last month by much more than expected has convulsed financial markets, vanquishing the euphoria that had taken the Nikkei to all-times highs of over 42,000 in recent weeks. The Nikkei 225 dropped 5.8% on Friday, making this its worst two-day decline ever. Its worst single-day rout was a plunge of 3,836 points, or 14.9%, on a day dubbed "Black Monday" in October 1987. At one point, the benchmark sank as much as 13.4% on Monday. Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The Nikkei is now down 3.8% from a year ago. One factor driving the BOJ to raise rates was prolonged weakness in the Japanese yen, which has pushed inflation to above the central bank's 2% inflation target. Early Monday, the dollar was trading at 142.39 yen, down from 146.45 late Friday and sharply below its level of over 160 yen a few weeks ago. The euro fell to $1.0896 from $1.0923. Shares surged to stratospheric heights earlier this year on frenzied buying of shares in companies expected to thrive thanks to advances in artificial intelligence. The latest setback has hit markets heavily weighted toward computer chipmakers like Samsung Electronics and other technology shares: on Monday, South Korea's Kospi plummeted 9.3% as Samsung's shares sank 11.6%. Taiwan's Taiex also crumbled, losing 8.4% as Taiwan Semiconductor Manufacturing Co., the world's biggest chip maker, dropped 9.8%. Stocks tumbled around the world on Friday after weaker than expected employment data fanned worries the U.S. economy could be cracking under the weight of high interest rates meant to tame inflation. Early Monday, the future for the S&P 500 was 1.5% lower and that for the Dow Jones Industrial Average was down 0.7%. "To put it mildly, the spike in volatility-of-volatility is a spectacle that underlines just how jittery markets have become," Stephen Innes of SPI Asset Management said in a commentary. "The real question now looms: Can the typical market reflex to sell volatility or buy the market dip prevail over the deep-seated anxiety brought on by this sudden and sharp recession scare?" The VIX, an index that measures how worried investors are about upcoming drops for the S&P 500, fell about 26% as of early Monday. Bitcoin which recently had surged to nearly $70,000, was down 14% at $54,155.00. Oil prices were little changed. U.S. benchmark crude oil gained 9 cents to $73.61 per barrel while Brent crude was flat at $76.81 per barrel. Investors will be watching for data on the U.S. services sector from the U.S. Institute for Supply Management due later Monday that may help determine if the sell-offs around the world are an overreaction, Yeap Jun Rong of IG said in a report. Worries over weakness in the U.S. economy and volatile markets have rippled around the world, even though the U.S. economy is still growing, and a recession is far from a certainty. Elsewhere in Asia, Hong Kong's Hang Seng index lost 2.5% to 16,519.78 and the S&P/ASX 200 in Australia declined 3.8% to 7,637.40. The Shanghai Composite index, which is somewhat insulated by capital controls from other world markets, edged higher but then gave way, losing 1.2% to 2,870.34. The S&P 500's 1.8% decline Friday was its first back-to-back loss of at least 1% since April. The Dow Jones Industrial Average dropped 1.5%, and the Nasdaq composite fell 2.4%. Friday's losses dragged the Nasdaq composite 10% below its record set last month. That level of drop is what traders call a "correction." The rout began just a couple days after U.S. stock indexes had jumped to their best day in months after Federal Reserve Chair Jerome Powell gave the clearest indication yet that inflation has slowed enough for cuts to rates to begin in September. Now, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the world's largest economy. A rate cut would make it easier for U.S. households and companies to borrow money and boost the economy, but it could take months to a year for the full effects to filter through. "Specifically, the scenario of higher unemployment constraining spending and further restraining hiring and incomes and economic activity leading to a recession is the feared scenario here," Tan Boon Heng of Mizuho Bank in Singapore said in a report. Copy link Email Facebook Twitter Telegram LinkedIn WhatsApp Reddit READ LATER Remove SEE ALL PRINT

Market rout: Asia stocks plunge after shares fell sharply last week

Meanwhile, the yen has been strengthening against the US dollar since the Bank of Japan raised interest rates last week, making stocks in Tokyo more expensive for foreign investors. "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," said Kei Okamura, a Tokyo-based portfolio manager at investment firm Neuberger Berman. The Japanese currency has strengthened around 9% against the US dollar over the last month. A stronger yen makes Japanese goods more expensive, and consequently less attractive for potential overseas buyers. Elsewhere in the Asia-Pacific region, Taiwan's main share index and South Korea's Kospi both fell more than 8%. India's main index the NSE Nifty 50 was trading1.8% lower and the ASX in Australia was down about 2%. The Hang Seng in Hong Kong was down 1.4%, while the Shanghai Stock Exchange was little changed. Cryptocurrencies were also down. Bitcoin dropped to just over $53,000, its lowest level since February. On Friday, stocks in New York fell sharply after official jobs data showed that US employers added 114,000 jobs in July, far fewer than expected. The figures raised concerns that a long-running jobs boom in the US might be coming to an end and drove speculation about when and by how much the Federal Reserve will cut interest rates. Stock markets were already worried about high borrowing costs and unsettled by signs that a long-running rally in share prices, fuelled in part by optimism over artificial intelligence (AI), might be running out steam. Friday's decline in the Nasdaq brought the index down about 10% from its most recent peak - a fall known as a "correction" - that in this case has happened in a matter of weeks. The Dow Jones Industrial Average also dropped 1.5% on Friday, and the S&P 500 ended 1.8% lower, after markets in Asia and Europe sank.

Japan's Nikkei Index, Reflecting Global Rout Over American Recession Fears, Sees Worst Day in Decades

Financial markets are convulsed by America's hiring slowdown, but a service sector report due out today could help investors determine whether the sell-offs are an overreaction. BANGKOK -- Japan's benchmark stock index plunged 12.4 percent on Monday, compounding a global market rout set off by investor concerns that the American economy could be headed for recession. A report Friday showing hiring by American employers slowed last month by much more than expected has convulsed financial markets, vanquishing the euphoria that had taken the Nikkei 225 to all-times highs of over 42,000 in recent weeks. The shakeup began just a couple of days after American stock indexes had jumped to their best day in months after the Federal Reserve chairman, Jerome Powell, set the stage for possible rate cuts to begin in September. After Friday's jobs report, though, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the world's largest economy. A rate cut would make it less expensive for American households and companies to borrow money, but it could take time for the effects to boost the economy. Until Friday, there had been relatively few huge market swings in the past year. A bonanza around artificial intelligence technology helped drive Big Tech stocks higher, while other areas of the market held up amid rising hopes for coming cuts to interest rates by the Federal Reserve. Professional investors have been warning that shakier times may be ahead, though, given uncertainty about how quickly the Fed will cut interest rates and other big questions. On Monday, the Nikkei closed down 4,451.28 points at 31,458.42. It had dropped 5.8 percent on Friday, making this its worst two-day decline ever. Its worst single-day rout was a plunge of 3,836 points, or 14.9 percent, on Oct. 19, 1987, a global markets crash that was dubbed "Black Monday" but proved to be only a temporary setback despite fears it might have augured a worldwide downturn. European markets also opened lower Monday, with Germany's DAX down 2.3 percent at 17,267.00. The CAC 40 in Paris lost 1.9 percent to 7,114.33 and the FTSE 100 in London was 2.1 percent lower at 8,004.19. Darkening the outlook for trading on Wall Street, early Monday futures trading for the S&P 500 was 2.5 percent lower and that for the Dow Jones Industrial Average was down 1.6 percent. Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The Nikkei is now down 3.8 percent from a year ago. The Japanese yen also has fallen sharply, trading at 142.37 yen, down from 146.45 late Friday and sharply below its level of over 160 yen a few weeks ago. The euro rose to $1.0952 from $1.0923. The VIX, an index that measures how worried investors are about upcoming drops for the S&P 500, was up about 26 percent as of early Monday. Bitcoin, which recently had surged to nearly $70,000, was down 16 percent at $53,160.00. Oil prices slipped, with U.S. benchmark crude oil giving up 74 cents to $72.78 per barrel. Brent crude, the international standard, lost 67 cents to $76.14 per barrel. Investors will be watching for data on the American services sector from the Institute for Supply Management due later Monday that may help determine if the sell-offs around the world are an overreaction, IG's Yeap Jun Rong said in a report. Even though worries over weakness in the American economy and volatile markets have rippled around the world, the United States economy is still growing, and a recession is far from a certainty. The mood was decidedly dark, though. Hong Kong's Hang Seng index lost 2.2 percent to 16,579.97 and the S&P/ASX 200 in Australia declined 3.7 percent to 7,649.60. The Shanghai Composite index, which is somewhat insulated by capital controls from other world markets, edged higher but then gave way, losing 1.5 percent to 2,862.56. The S&P 500's 1.8 percent decline Friday was its first back-to-back loss of at least 1 percent since April. The Dow Jones Industrial Average dropped 1.5 percent, and the Nasdaq composite fell 2.4 percent, taking it to 10 percent below its record set last month. That level of drop is what traders call a "correction."

Fears of US recession send Asian stock markets tumbling

Concerns have been raised after the world's largest economy reported much lower-than-expected job creation in July. Stock markets in Asia have dropped sharply during trading on Monday amid fears the US economy may be heading for a recession. Japan's Nikkei 225 share index fell by as much as 10% at one point, while the market's broader TOPIX index also fell 8%. South Korea's KOSPI index also dropped more than 8% on Monday, while India's Nifty 50 fell more than 2%. It comes after US jobs market data on Friday came in much lower than expected for July. Some 114,000 jobs were created during the month - significantly lower than the 175,000 jobs forecast by Wall Street. The figure was the weakest since December last year and the second weakest since the start of the COVID pandemic in the West in March 2020. Robert Carnell, from financial services firm ING, said: "What we are looking at now is a situation where the market is viewing what's going on in the US macro economy as ticking the recession box." Concerns globally have also been heightened by worries over the strength of China's economy and several weak earnings reports from major technology firms last week, as investors grow jittery over potential returns from investment in AI.