- Japan stocks jump 10% after global markets slump
- The Nikkei 225 index rose by as much as 10%, following a more than 12% decline the day before
- The sell-off was triggered by the Bank of Japan’s second rate hike in 17 years
- The market turmoil wasn’t limited to Japan, as US, UK, and European stocks also fell on Monday
Japan stocks jump 10% after global markets slump
Japanese stocks bounced back on Tuesday morning, recovering after a sharp drop on Monday. The Nikkei 225 index rose by as much as 10%, following a more than 12% decline the day before. The sell-off was triggered by the Bank of Japan’s second rate hike in 17 years, which caused the yen to strengthen against the dollar, making Japanese exports more expensive and affecting investor sentiment.
The market turmoil wasn’t limited to Japan, as US, UK, and European stocks also fell on Monday due to concerns over a potential slowdown in the American economy.
🚨#BREAKING: Over $1.93 trillion has been wiped out from the US stock market so far today as the Nasdaq has dropped over 1,000 points. Officials say the Nasdaq has never been this low, not even intraday. pic.twitter.com/gCODgVGri9
— R A W S A L E R T S (@rawsalerts) August 5, 2024
Despite the volatility, Jesper Koll, executive director of Monex Group Japan, expressed optimism about the Japanese market. He highlighted strong economic fundamentals, minimal recession risks, and a focus on increasing capital returns by corporate leaders.
Similarly, South Korean shares showed signs of recovery on Tuesday. The Kospi index rose over 4%, bouncing back from an 8.8% drop on Monday, its worst performance since the 2008 financial crisis.