The Tokyo Stock Exchange suffered its second-biggest daily drop in its history on Friday, registering a loss of almost 6%, after the fall recorded in Wall Street due to concerns about the U.S. economy.
The main index of Tokyo’s Nikkei 225 fell 5.81% to 35,909.70 points, the second-largest drop in points in a session in its history, after one recorded in 1987.
Tokyo stock market crash: The two main causes of the historic fall
The analysis firm Matsui Securities attributed the collapse “due to a series of factors weighing on the market, such as the fall in US stocks and the appreciation of the yen” against the dollar.
The New York Stock Exchange, which had started the first session of August in the green, collapsed Thursday and Friday after news of a US economic indices that worried investors, offsetting optimism about possible interest rate cuts by the Federal Reserve.
The Institute for Supply Management’s manufacturing index also came in at 46.8% in July, down from the previous month and below analysts’ estimates. “This is a warning sign that the US economy is slowing down more than the market had anticipated,” says Takuma Ikemoto in a note from the Tokai Tokyo Intelligence Lab.
Source: Ambito
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