"Black Monday"? Global stock markets continue to plummet, with the Nikkei plunging 6%, bank stocks tumbling, and the TOPIX index triggering a circuit breaker
The Dong Index has fallen 20% from its high point in July and is poised to enter a technical bear market. Samsung's stock price has widened its decline to 5%, marking the largest drop since 2020
Affected by weak US employment and economic data, the Asia-Pacific stock market continued to decline on Monday. The Japanese stock market plummeted, with the Nikkei 225 index falling by 6%, led by declines in banking, finance, and mining stocks. The South Korean stock market dropped by nearly 4%, with Samsung's stock price falling by 5%, marking the largest decline since 2020. The Australian stock market fell by over 2%.
Third Consecutive Decline in Japanese Stocks
On Monday, the Nikkei 225 index fell by over 5%, accumulating a total decline of over 12% in three days. The TOPIX index's decline triggered a circuit breaker, falling 20% from its peak in July and is likely to enter a technical bear market. Banking stocks plummeted, with Mitsubishi UFJ Financial Group's stock price falling by as much as 21%, marking its largest historical decline.
Since the Bank of Japan raised interest rates last Wednesday, causing the yen to surge, Japanese stocks have been falling for three consecutive trading days. Coupled with concerns about the slowdown in the US economy, investor confidence has been dampened. The Nikkei 225 index has fallen by over 20% from its high on July 11, with all 33 industry sectors in the Japanese stock market experiencing declines. If the Nikkei 225 maintains this level of decline today, it will enter a technical bear market. With global stock markets in a slump, even insurance companies and bank stocks that could benefit from interest rate hikes have now become the biggest losers.
Decline in the South Korean Stock Market
The KOSPI index in South Korea fell by over 3%, with Samsung Electronics dropping by over 4%.
Updates as of 08:43:
- 10-year Japanese government bond yields fell by 10 basis points.
- The yen against the US dollar broke through the 146 level in early trading.
- The 2-year US Treasury yield widened to 11 basis points, hitting a low not seen since May 2023.
The yield on the 10-year US Treasury bond fell by 7 basis points to 3.72%, the lowest level since June 2023.
