Tokyo Stock Exchange
15:49 JST, August 5, 2024
The benchmark Nikkei 225 fell by a record high of 4,451.28 points on Monday to close at 31,458.42, as stocks in Tokyo fell across the board.
The Nikkei average had already seen a 2,216-point drop from the previous day on Friday. The broader TOPIX stock index also fell 310.45 on Monday to close at 2,227.15.
One of the factors affecting stock prices was the appreciation of the yen, which temporarily reached ยฅ141 per dollar on the Tokyo currency market.
The circuit breaker was activated for TOPIX futures on the Osaka Exchange after sharp price movements exceeded the limit.
U.S. July jobs data fell far short of market expectations, raising uncertainty about the U.S. economy. This caused all major U.S. stock indexes to plunge on Friday. The Tokyo market picked up on the trend on Monday, with sell orders coming in immediately after trading opened for a wide range of stocks sensitive to economic trends, particularly semiconductor-related stocks.
The dollar fell further against the yen in Tokyo and export-related stocks such as cars also fell on speculation that their performance would deteriorate.
Some in the market believe that the US Federal Reserve Board will cut interest rates drastically in September to address the slowdown in the US economy. In contrast, the Bank of Japan raised its interest rate in July, causing the market to sell dollars for yen on speculation that the gap between US and Japanese interest rates is narrowing.
The Nikkei 225 fell sharply over the weekend as investors became increasingly risk-averse amid concerns about the weakening U.S. economy. The two-day decline on Thursday and Friday totaled about 3,200 points.
