Japan Stock market crash: Nikkei 225 index plunges 12.4% as world markets tremble over risks to the US economy
The HinduJapan’s benchmark stock index plunged 12.4% on August 5, compounding a global market rout set off by investor concerns that the the U.S. economy could be headed for recession. But after Friday’s jobs report, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the world’s largest economy. A bonanza around artificial intelligence technology helped drive Big Tech stocks higher, while other areas of the market held up amid rising hopes for coming cuts to interest rates by the Federal Reserve. The latest setback has hit markets heavily weighted toward computer chipmakers like Samsung Electronics and other technology shares: on Monday, South Korea’s Kospi plummeted more than 9% as Samsung’s shares sank 10.3%.