Global markets were in the deep red today, following big falls last week by major indexes around the world. Stock markets in Asia plunged, after weak jobs data in the United States on Friday sparked fears of a recession in the world’s largest economy.
In Japan, the Nikkei 225 and Topix indexes were both down by more than 10 percent in afternoon trade. Nikkei 225 stock index posted its biggest intraday plunge on record. The index briefly fell more than 4,000 points, breaching the previous record drop of 3,836 points in the “Black Monday” crash in 1987.
On the other hand, Japanese currency, 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. 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 per cent. The Hang Seng in Hong Kong was down 1.4 per cent, while the Shanghai Stock Exchange remained flat. The ASX in Australia was down about 2 per cent. On Friday, stocks in New York fell sharply after official jobs data showed that US employers added far fewer jobs in July, than expected.
