Japanese stock market in turmoil: Nikkei 225 falls by 12.4%

Japan's Nikkei 225 stock index fell by 12.4% on Monday due to a wave of sell-offs triggered by fears over the state of the U.S. economy. The index closed at 31,458.42, losing 4,451.28 points, while the broader TOPIX index dropped by 12.8%, according to Asahi.

The panic was driven by a slowdown in U.S. hiring, raising recession concerns. On Friday, Nikkei had already fallen by 5.8%, marking its worst two-day decline in history. This downturn began after the Bank of Japan raised its key interest rate to tackle inflation caused by the yen's weakness.

Technology stocks, such as Samsung Electronics and Taiwan Semiconductor Manufacturing Co., suffered significant losses, with South Korea's Kospi index down by 9.3% and Taiwan's Taiex by 8.4%. Bitcoin also dropped by 14%, reaching $54,155.00.

Markets are awaiting new U.S. data that may clarify whether the current crash is a reaction to recession fears. Despite concerns, the U.S. economy is still growing.

News.Az