Tokyo's Nikkei Index Dives 3% After Global Market Slump
By AFP - Agence France Presse
September 8, 2024
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Tokyo's Nikkei index shed more than three percent on Monday, after weaker than expected US jobs growth and speculation over a Fed rate cut caused global markets to slump.
The benchmark Nikkei 225 was down 3.02 percent, or 1,098.77 points, at 35,292.70 in early trade, while the broader Topix index fell 2.67 percent, or 69.28 points, at 2,528.14.
The dollar fetched 142.60 yen, against 142.29 yen on Friday in New York.
"Japanese markets are expected to start with a significant decline due to losses in US markets as well as caution over the strong yen," said senior market analyst Toshiyuki Kanayama of brokerage Monex.
Japan's currency has recently picked up on bets of a US Federal Reserve interest rate cut and growing expectations that the Bank of Japan will continue to raise its own borrowing costs.
US jobs data came in below analyst estimates on Friday, pointing to a slowing economy and causing shares to tumble.
"Global jitters and a suddenly stronger yen are dragging down the index, further compounding the risk-off mood gripping markets," said Stephen Innes in his Dark Side Of The Boom newsletter.
By AFP - Agence France Presse
September 8, 2024
Order Reprints
Print Article
Text size
Tokyo's Nikkei index shed more than three percent on Monday, after weaker than expected US jobs growth and speculation over a Fed rate cut caused global markets to slump.
The benchmark Nikkei 225 was down 3.02 percent, or 1,098.77 points, at 35,292.70 in early trade, while the broader Topix index fell 2.67 percent, or 69.28 points, at 2,528.14.
The dollar fetched 142.60 yen, against 142.29 yen on Friday in New York.
"Japanese markets are expected to start with a significant decline due to losses in US markets as well as caution over the strong yen," said senior market analyst Toshiyuki Kanayama of brokerage Monex.
Japan's currency has recently picked up on bets of a US Federal Reserve interest rate cut and growing expectations that the Bank of Japan will continue to raise its own borrowing costs.
US jobs data came in below analyst estimates on Friday, pointing to a slowing economy and causing shares to tumble.
"Global jitters and a suddenly stronger yen are dragging down the index, further compounding the risk-off mood gripping markets," said Stephen Innes in his Dark Side Of The Boom newsletter.
