Japanese Stocks Lead Asian Market Rebound After Monday’s Rout

Forbes Business Breaking Japanese Stocks Lead Asian Market Rebound After Monday’s Rout Siladitya Ray Forbes Staff Siladitya Ray is a New Delhi-based Forbes news team reporter. Following Aug 6, 2024, 02:08am EDT Updated Aug 6, 2024, 06:36am EDT Share to Facebook Share to Twitter Share to Linkedin Topline Asian stock markets mounted a recovery on
Japanese Stocks Lead Asian Market Rebound After Monday’s Rout

Japanese Stocks Lead Asian Market Rebound After Monday’s Rout

Following

Updated Aug 6, 2024, 06:36am EDT

Topline

Asian stock markets mounted a recovery on Tuesday—led by the Japanese Nikkei 225 index—after being hit with a historic rout on Monday due to recession fears triggered by worse-than-expected U.S. jobs market numbers.

Key Facts

Japan’s Nikkei 225 index surged more than 10% on Tuesday to 34,675 points while the Tokyo Stock Price Index (TOPIX) was up 8.2%.

The Nikkei’s recovery comes a day after the benchmark index crashed 12.4%, marking its worst single-day selloff since the 1987 “Black Monday” crash.

South Korea’s KOSPI opened in the green and was up more than 3.74% at 2,532 points in afternoon trading.

Taiwan’s Taiex was up 3.38% in afternoon trading on Tuesday, led by a nearly 8% bump in the stock price of the world’s biggest chip maker TSMC.

U.S. futures markets also showed signs of recovery early Tuesday, with Nasdaq, S&P 500 and Dow Futures up 1.75%, 1.40% and 0.97% respectively.

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Tangent

The CBOE Volatility Index, often called the market’s fear gauge, was at 38.57 points early on Tuesday—a more than 134% increase compared to last week. Monday’s global market rout had pushed the fear index above the 55-point mark before it fell back down below 40, but it still remains at a level not seen since 2020.

Key Background

Both Wall Street and other global stock markets were hit by a major selloff on Monday, after a worse-than-expected U.S. jobs report released on Friday triggered fears of a recession. In the U.S., the benchmark S&P 500 index and 30-company Dow Jones Industrial Average fell 3% and 2.6% respectively—their worst single-day decline since September 2022. The tech-focused Nasdaq was hit even harder by Monday’s rout, falling 3.4%. Last week, the Labor Department reported that the U.S. economy had added 114,000 jobs in July—well short of analysts’ predictions of 185,000 jobs—and the country’s unemployment rate had risen from 4.1% to 4.3%. The numbers raised fears that the Federal Reserve may have waited too long to cut interest rates, which are at a 23-year high.

Further Reading

S&P 500, Nasdaq Sink To Lowest Levels Since May As Crash Fears Linger (Forbes)

US Stock Futures Slump, Asian Stocks Routed Amid Recession Fears (Forbes)

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TikTok’s Chinese parent to sell the social media platform,  Elon Musk’s handling of policy issues at X and the  2024 General Elections in India. Prior to joining Forbes, Siladitya worked as a reporter with the Hindustan Times and Medianama covering tech policy and consumer tech in India. He graduated from Columbia University with an MA in Business and Economics Journalism in 2019. Follow Ray for continued coverage on TikTok in the U.S., Elon Musk and X and other key developments at big tech companies. Tips: siladitya@protonmail.com. Forbes reporters follow company ethical guidelines that ensure the highest quality.

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