2nd August 2024 – (Tokyo) Japan’s benchmark Nikkei stock index, The 225-issue Nikkei Stock Average, saw a significant drop on Friday morning, plunging more than 2,000 points and falling below the 37,000 mark.
This represented one of the steepest declines since early February during intraday trading.
The sharp downturn in the Tokyo stock market is largely attributed to growing concerns over the slowing U.S. economy, market watchers here noted, as investor sentiment has been negatively impacted by recent economic data from the United States, which suggests a potential deceleration in economic growth.
In the first 15 minutes of trading, the 225-issue Nikkei Stock Average fell 1,715.67 points, or 4.50 per cent, from Thursday to 36,410.66. The broader Topix index was down 118.87 points, or 4.40 per cent, at 2,584.82.
The extensive sell-off in Tokyo was marked by a broad-based decline, with almost all sectors experiencing losses. Major contributors to the plunge included securities house, insurance and bank issues.
“The U.S. economic data has raised concerns about a potential slowdown, and that’s weighing heavily on investor sentiment here in Japan,” said Kazuo Yamashita, a senior market analyst at Tokyo-based brokerage firm Okasan Securities.
“We’re seeing a flight to safety as investors look to protect their holdings amid the heightened uncertainty.”
The post Nikkei plunges over 2,000 points on worries about U.S. economic slowdown appeared first on Dimsum Daily.
English (US) ·