Stock Market News

Asian stocks tumble on recession fears; Japanese shares eye bear market

2024.08.04 23:07

Asian stocks tumble on recession fears; Japanese shares eye bear market

Investing.com– Asian stocks fell sharply on Monday, extending last week’s losses amid growing fears of a U.S. economic slowdown, with Japanese markets set to enter a bear market from their July record highs. 

Markets tracked a slump in Wall Street on Friday, after substantially weaker-than-expected nonfarm payrolls data ramped up concerns that the Federal Reserve will keep interest rates high for too long for the economy to see a soft landing. Other middling economic readings through the week and mixed earnings from heavyweight technology stocks also battered U.S. markets, providing weak cues to regional stocks.

U.S. stock index futures fell further in Asian trade on Monday.

Japan’s Nikkei, TOPIX eye bear market 

Japan’s slid 5.5% on Monday, while the broader plummeted nearly 7%. Both indexes were now trading more than 20% down from record highs hit in July- setting them up to enter a bear market if they closed at current levels. 

Japanese stocks were battered by a mix of heavy profit-taking- with foreign investors pulling out en-masse as the Japanese yen appreciated sharply.

This trend was spurred by hawkish signals from the Bank of Japan, after the central bank raised interest rates last week and flagged more potential hikes in 2024.

Middling earnings from heavyweight automaker Toyota Motor (NYSE:) Corp (TYO:) set a dour tone for Japanese markets, with a slew of key earnings from the country due this week. Sony Corp (TYO:) and SoftBank Group Corp. (TYO:) are set to report in the coming days.

Chinese losses limited by some positive PMI data 

China’s and indexes fell relatively less than their peers, given that they were already nursing steep losses over the past two months.

The two indexes fell 0.3% and 0.4%, respectively, and remained at more than five-month lows. Hong Kong’s index fell 1%. 

Private on Monday showed China’s services sector grew slightly more than expected in July, presenting some resilience in the economy.

The reading helped slightly improve sentiment towards China after dismal readings on the manufacturing sector last week. 

A string of key Chinese economic readings are due this week, including and data. 

Asia walloped by growth concerns 

Broader Asian markets tumbled as appetite for risk-driven stocks was dented by the prospect of worsening economic conditions. Safe havens such as the Japanese yen and gold saw inflows. 

Australia’s slid 2.5%, with focus turning to a on Tuesday, where the central bank is widely expected to keep rates steady.

South Korea’s tumbled 5.5%, notching extended losses on weakness in technology stocks. The sector was battered by a mix of profit-taking and middling earnings from major U.S. tech firms. 

Futures for India’s index pointed to a negative open, with Indian stocks set for more profit-taking after the Nifty surged to record highs above 25,000 points last week. 



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,473.38 0.16%
ethereum
Ethereum (ETH) $ 3,465.69 1.08%
tether
Tether (USDT) $ 0.99907 0.03%
xrp
XRP (XRP) $ 2.28 2.37%
bnb
BNB (BNB) $ 700.24 0.61%
solana
Solana (SOL) $ 198.03 0.80%
dogecoin
Dogecoin (DOGE) $ 0.329207 1.60%
usd-coin
USDC (USDC) $ 1.00 0.03%
staked-ether
Lido Staked Ether (STETH) $ 3,461.58 0.89%
cardano
Cardano (ADA) $ 0.910647 3.26%
tron
TRON (TRX) $ 0.256631 0.35%
avalanche-2
Avalanche (AVAX) $ 40.33 2.22%
chainlink
Chainlink (LINK) $ 24.51 0.88%
the-open-network
Toncoin (TON) $ 5.94 2.48%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,111.47 0.74%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 1.48%
sui
Sui (SUI) $ 4.52 1.81%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,367.36 0.18%
hedera-hashgraph
Hedera (HBAR) $ 0.314783 1.44%
stellar
Stellar (XLM) $ 0.382339 7.20%
polkadot
Polkadot (DOT) $ 7.46 0.86%
weth
WETH (WETH) $ 3,465.27 1.06%
hyperliquid
Hyperliquid (HYPE) $ 28.16 6.53%
bitcoin-cash
Bitcoin Cash (BCH) $ 459.35 3.38%
leo-token
LEO Token (LEO) $ 9.53 0.50%
uniswap
Uniswap (UNI) $ 13.83 4.78%
litecoin
Litecoin (LTC) $ 108.26 1.37%
bitget-token
Bitget Token (BGB) $ 5.64 15.53%
pepe
Pepe (PEPE) $ 0.000018 4.29%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,657.47 1.02%
near
NEAR Protocol (NEAR) $ 5.42 2.74%
ethena-usde
Ethena USDe (USDE) $ 0.999182 0.02%
aave
Aave (AAVE) $ 370.34 1.47%
usds
USDS (USDS) $ 0.999749 0.11%
internet-computer
Internet Computer (ICP) $ 11.22 0.35%
aptos
Aptos (APT) $ 9.56 1.92%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.513672 2.75%
crypto-com-chain
Cronos (CRO) $ 0.158195 4.75%
vechain
VeChain (VET) $ 0.051622 2.34%
mantle
Mantle (MNT) $ 1.24 0.20%
ethereum-classic
Ethereum Classic (ETC) $ 27.19 3.56%
render-token
Render (RENDER) $ 7.52 4.31%
bittensor
Bittensor (TAO) $ 504.51 1.35%
whitebit
WhiteBIT Coin (WBT) $ 25.07 1.04%
monero
Monero (XMR) $ 194.43 1.04%
mantra-dao
MANTRA (OM) $ 3.76 1.21%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.35 3.67%
dai
Dai (DAI) $ 0.999581 0.11%
arbitrum
Arbitrum (ARB) $ 0.795343 3.11%
filecoin
Filecoin (FIL) $ 5.28 3.75%