Japan stocks slide 5% in extended sell-off
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More news: Japan’s benchmark Nikkei 225 stock index slumped more than 5% in early trading on Monday to 33,960, extending a sell-off that began last week. Japanese stocks have tumbled on worries about the US economy amid the weight of high interest rates. They have also been pummeled after the Bank of Japan raised its benchmark interest rate last week, in its largest increase since 2007, potentially hurting manufacturers’ earnings and deflating a tourism boom.
Australian shares plunge on global economic worries
More news: Australian shares have dropped sharply, falling for a second straight session as local investors took the cue from a heavy selloff on Wall Street on Friday, amid rising fears of a recession in the US that would hamper economic growth globally.
The benchmark ASX 200 index was down 204 points, or 2.6%, at 7,738.60 within the first half hour of trading, with banking and mining stocks leading the declines. Payments giant Block, Macquarie Group, accounting software giant Xero and Big Four bank CBA were among the worst performers, all down between 3% and 9%.
US stocks sold off on Friday after a soft jobs report heightened fears of a recession, adding to concerns the US economy was slowing more rapidly than anticipated and the Federal Reserve had erred by keeping rates steady at its latest policy meeting.
Australian shares to extend losses on Wall Street sell-off
The news: The Australian sharemarket is poised to start the new week deep in the red, tracking a second straight session of losses on Wall Street on Friday over fears of an oncoming recession.
The numbers: The Dow Jones index ended 1.51% lower on Friday, the broader S&P 500 fell 1.84% while the tech-heavy Nasdaq lost 2.43% taking it into correction territory. In the local market, ASX 200 futures were down 115 points or 1.46% to 7,770 points at 7am AEST on Monday.
The context: US stocks sold off after a soft jobs report heightened fears of a recession. Labor Department data showed US nonfarm payrolls increased by 114,000 jobs last month, well short of the 175,000 average forecast by economists polled by Reuters, while the unemployment rate jumped up to 4.3%, near a three-year high.
The data added to concerns the US economy was slowing more rapidly than anticipated and the Federal Reserve had erred by keeping rates steady at its policy meeting that concluded on Wednesday.
Adding downward pressure was a sharp drop in Amazon and Intel after their quarterly results and disappointing forecasts. The declines pushed the Nasdaq Composite down more than 10% from its July closing high to confirm the index is in a correction after concerns grew about expensive valuations in a weakening economy.
The source: Reuters
