Japanese equities officially entered a bear market on Monday as markets across the Asia-Pacific region extended the sell-off seen last week, resulting in the Nikkei 225 and Topix plummeting by over 12%.
The major indices have witnessed a drop of more than 20% from their record highs as of July 11.
Leading trading companies like Mitsubishi, Mitsui and Co, Sumitomo, and Marubeni all experienced significant declines of around 10%.
Following Friday’s sharp decline, where the Nikkei 225 and Topix in Japan fell by more than 5% and 6% respectively, Monday’s trading session saw further losses. The broader Topix index recorded its worst performance in eight years, while the Nikkei index had its worst day since March 2020.
During Monday’s trading, the yen also appreciated to its highest level against the US dollar since January, with the exchange rate standing at 143.10.
The Japanese yen also appreciated, reaching its highest value against the US dollar since January, and is currently trading at 143.10.
The Kospi index in South Korea experienced a decline of 8.1% before trading was suspended for 20 minutes at 2:14 p.m. Seoul time, triggered by the exchange’s circuit breakers. Concurrently, the small-cap Kosdaq index dropped by 11.71%.
Investors are currently anticipating significant trade data releases from China and Taiwan this week, along with monetary policy decisions from the central banks of Australia and India.
In July, China’s service sector demonstrated a more rapid expansion, as evidenced by the purchasing managers’ index rising to 52.1, an increase from 51.2 in June.
According to the Caixin survey, this growth acceleration was attributed to a quicker increase in new business, which was “supported by sustained improvements in underlying demand conditions and an expansion of services offerings.”
The Taiwan Weighted Index experienced a decline of more than 8%, primarily due to the decrease in tech and real estate stocks. Australia’s S&P/ASX 200 saw a decline of 3.5% in value.
The Reserve Bank of Australia is commencing its two-day monetary policy meeting on Monday. According to economists surveyed by Reuters, the central bank is anticipated to maintain rates at 4.35%. However, market participants will closely observe the monetary policy statement to gain insight into whether the RBA is contemplating a rate hike.
In Asia, the Hong Kong Hang Seng index recorded a decrease of 1.61%, while mainland China’s CSI 300 saw a modest decline of 0.48%, marking the smallest loss in the region.
Stocks in the U.S. experienced a significant decline on Friday due to a jobs report for July that was much weaker than expected, sparking concerns about a potential recession. The Nasdaq was the first of the three major benchmarks to fall into correction territory, dropping over 10% from its peak.
The S&P 500 and Dow also saw decreases, with the former down 5.7% and the latter down 3.9% from their respective all-time highs. The S&P 500 declined by 1.84%, the Nasdaq Composite by 2.43%, and the Dow Jones Industrial Average by 610.71 points, or 1.51%.
- Published By Team Genuine Reporter