11:21 JST, August 2, 2024
Tokyo, Aug. 2 (Jiji Press) — Japan’s benchmark Nikkei 225 stock average fell more than 2,000 points in Tokyo trading on Friday morning, reflecting subdued investor sentiment amid mounting concerns about the direction of the U.S. economy.
At 10:06 a.m., the Nikkei was trading at 36,107.29, down 2,019.04 points, or 5.30 percent, from Thursday. If the index holds around this level through the close of the day, it will be the second-largest drop ever.
Market participants in Tokyo sold off a large number of stocks after all three major U.S. stock indexes fell on Thursday, after economic data that day pointed to a slowdown in the U.S. economy.
The yen entered a correction phase after a historic depreciation and that also had a negative impact on Tokyo stock prices. Market sources said that an increase in corporate profits was expected due to a weaker yen that was depreciating rapidly.
At the Tokyo currency market, the dollar was at ¥149.38-38 at 10 a.m., down from ¥149.85-85 at 5 p.m. on Thursday.
Meanwhile, Japanese government bonds attracted more buyers, as US Treasuries rose overnight and the Nikkei average fell during the day.
In Tokyo interdealer bond trading, the yield on the latest 10-year JGB issue, Japan’s long-term benchmark interest rate, fell 0.070 percentage points to 0.960 percent on Thursday evening, the lowest level since June 20.
