05 August,2024 12:00 PM IST | Tokyo | mid-day online correspondent
Representational Image. Pic/Pixabay
Japan's Nikkei 225 stock index plunged more than 12 per cent on Monday as investors worried that the US economy may be in worse shape than had been expected dumped a wide range of shares, reported Associated Press.
The Japan's Nikkei 225 stock index shed 4,451.28 to 31,458.42. It dropped 5.8 per cent on Friday and has now logged its worst two-day decline ever, dropping 18.2 per cent in the last two trading sessions.
At its lowest the Nikkei plunged as much as 13.4 per cent. Its biggest single-day rout was a drop of 3,836 points, or 14.9 per cent, on the day dubbed "Black Monday" in October 1987. It suffered an 11.4 per cent drop in October 2008 during the global financial crisis and fell 10.6 per cent during the aftermath of massive earthquakes and nuclear meltdowns in northeastern Japan in March 2011, reported Associated Press.
Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The benchmark is now about 3.8 per cent below the level it was at a year ago.
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The wave of selling hit all sorts of companies.
Toyota Motor Corp.'s shares dropped 11 per cent and Honda Motor Co. lost 13.4 per cent. Computer chip maker Tokyo Electron dived 15.8 per cent and Mitsubishi UFJ Financial Group plunged 18.4 per cent, reported Associated Press.
Meanwhile, equity market benchmark indices Sensex and Nifty tumbled in early trade on Monday in-line with extremely weak trends in global markets amid fears of a slowdown in the US economy and foreign fund outflows.
The 30-share BSE Sensex tanked 2,401.49 points to 78,580.46 in early trade. The NSE Nifty tumbled 489.65 points to 24,228.05.
From the Sensex pack, Tata Motors, Tata Steel, JSW Steel, Adani Ports, Maruti and Reliance Industries were the biggest laggards.
Sun Pharma and Hindustan Unilever were trading in the positive territory.
In Asian markets, Seoul, Tokyo and Hong Kong were trading sharply lower while Shanghai quoted higher.
The US markets ended significantly lower on Friday.
Global oil benchmark Brent crude climbed 0.35 per cent to USD 77.08 a barrel.
Amid widespread selling pressure, the BSE benchmark plunged 885.60 points or 1.08 per cent to close at 80,981.95 on Friday. The broader Nifty of NSE dropped 293.20 points or 1.17 per cent to end at 24,717.70.
(With inputs from Associated Press)
