Tokyo stocks plummet in worst intraday losses amid broad sell-offs

Xinhua
Tokyo stocks closed sharply lower on Monday, with the benchmark Nikkei stock index sinking more than 12 percent, the worst intraday losses in history.
Xinhua
Tokyo stocks plummet in worst intraday losses amid broad sell-offs
CFP

A pedestrian passes before a share prices board in Tokyo on August 5, 2024.

Tokyo stocks closed sharply lower on Monday, with the benchmark Nikkei stock index sinking more than 12 percent, the worst intraday losses in history.

The 225-issue Nikkei Stock Average plunged to its lowest level this year by ending the day at 31,458.42, down 4,451.28 points, or 12.40 percent from Friday, refreshing its record intraday drop which was previously seen at 3,836 points in the "Black Monday" crash in 1987.

The broader TOPIX index, meanwhile, also ended significantly lower by finishing 310.45 points, or 12.23 percent, lower at 2,227.15.

Futures trading for both benchmark indices were suspended at one point over circuit breakers.

On the top-tier Prime Market, most stocks declined, with bank, insurance and securities house shares leading the losses.

Market watchers here noted the sharp declines came amid a broad "panic" sell-offs over growing concerns over a potential recession in the United States and a strengthening yen.

The dollar briefly dropped to around a seven-month low in the upper 144 yen zone in Tokyo amid speculation that the Federal Reserve will cut interest rates significantly in September following recent weak economic data.

In the Tokyo forex market, the Japanese yen on Monday strengthened to a seven-month-high, briefly reaching the upper 142-yen level against the US dollar, which further dragged export-related issues.

Sell-offs of technology shares were also prevailing in the market amid heightened risk-off sentiment after the tech-heavy Nasdaq and a key semiconductor index fell sharply on Friday, according to analysts.

Citing the Monday meltdown, some analysts here pointed out that Tokyo seems to have been suffering a worse-than-expected spillover from US recession fears compared to other markets.


Special Reports

Top