Latest US job market data intensify concerns about the health of the world’s largest economy. Asian stocks tumbled on Monday, extending sharp losses from the previous trading session, after the latest US job market data intensified concerns about the health of the world’s largest economy.
Leading the losses in Asia, the Japanese Nikkei index plunged 12.4% in Tokyo, closing at 31,458.42 points, marking the biggest daily drop since October 1987, also known as “black monday”.
With this, the Nikkei completely erased the gains made in 2024 and entered bear market territory, with a 25% drop since its historical high reached in July.
In other parts of the Asian region, the South Korean Kospi fell 8.77% in Seoul, to 2,441.55 points, and the Taiex dropped 8.35% in Taiwan, to 19,830.88 points.
On Friday (02), the US employment report, known as payroll, came in much worse than expected, reinforcing fears that the American economy may be heading towards a recession and leading New York stock markets to suffer significant losses for the second consecutive day.
Mainland China and Hong Kong markets had relatively smaller losses today, after data showed that the Chinese service sector expanded at a faster pace in July.
The Shanghai Composite fell 1.54%, to 2,860.70 points, and the less comprehensive Shenzhen Composite dropped 2.08%, to 1,548.83 points.
The Hang Seng had a 1.46% decline in Hong Kong, to 16,698.36 points.In Oceania, the Australian stock market experienced its biggest daily drop since May 2020: the S&P/ASX 200 fell 3.70% in Sydney, to 7,649.60 points.
