Global financial markets experienced a sharp decline on Monday, as concerns over a potential US economic slowdown triggered widespread sell-offs.
Asian markets were particularly hard-hit, with Japan’s Nikkei Index plummeting by 10%, South Korea’s KOSPI dropping over 8%, and Taiwan’s TAIEX falling by 4.43%.
Jakarta’s Composite Index fell nearly 2%, while Hong Kong’s Hang Seng and Shanghai Composite dropped 1.43% and 0.83%, respectively.
Yonhap News Agency reported that intense market volatility prompted a five-minute halt in trading on South Korea’s KOSPI 200 index.
In the US, stock markets fell for a second consecutive session on Friday.
The Dow Jones Industrial Average declined by 1.51%, and the Nasdaq Composite saw a 2.43% drop.
A disappointing jobs report heightened investor concerns, suggesting that the world’s largest economy might be heading towards a recession.
Indian stock markets also opened sharply lower on Monday. By 11 AM, the BSE Sensex was at 78,798, down 2,183 points or 2.70%, while the NSE Nifty was at 24,061, a decline of 657 points or 2.66%.
Santosh Meena, Head of Research at Swastika Investmart, attributed the market downturn to a confluence of negative factors.
Meena stated, “The global market is under significant pressure due to a mix of troubling news. Initial fears of a reverse Yen carry trade, prompted by an interest rate hike in Japan, were exacerbated by worries of a US recession following poor job data.”
Other experts noted that expectations of a soft landing for the US economy had driven the global stock market rally.
However, the disappointing July job numbers and a rise in the US unemployment rate to 4.3% have undermined these expectations.
Additionally, ongoing geopolitical tensions in the Middle East are contributing to the negative market sentiment.
As markets navigate these turbulent conditions, investors remain on edge, closely monitoring economic indicators and global developments.
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