Japan’s stock market entered a bear market on Monday amid a widespread sell-off across Asia-Pacific markets. The Nikkei 225 and Topix indexes both dropped over 12%, falling more than 20% from their all-time highs in July. The Nikkei’s 12.4% loss was the largest since the 1987 “Black Monday” and the largest in its history in terms of points. South Korea’s Kospi also fell sharply, triggering a 20-minute halt in trading.
Investors are watching for key trade data from China and Taiwan, as well as central bank decisions from Australia and India. China saw an expansion in its service sector in July, while Taiwan’s stock market fell over 8% driven by tech and real estate stocks. Australia’s S&P/ASX 200 also fell 3.7%.
In the US, stocks dropped as a weaker-than-expected jobs report for July raised concerns about a potential recession. The Nasdaq entered correction territory, down more than 10% from its record high, while the S&P 500 and Dow were also below their all-time highs. The S&P 500 fell 1.84%, the Nasdaq lost 2.43%, and the Dow Jones Industrial Average dropped 1.51%.
Overall, market volatility is high as uncertainty surrounding economic recovery and central banks’ monetary policy decisions persist.
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