By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Investment banks lift China growth outlook after surprise trade deal with U.S.
    Investment banks lift China growth outlook after surprise trade deal with U.S.
    May 13, 2025
    First group of white South Africans lands in U.S. under Trump refugee plan
    First group of white South Africans lands in U.S. under Trump refugee plan
    May 13, 2025
    Seattle Storm set roster for 2025 season
    Seattle Storm set roster for 2025 season
    May 13, 2025
    Chiefs superfan Xaviar Babudar, or ‘Chiefsaholic,’ sentenced to more time in prison after bank robbery spree
    Chiefs superfan Xaviar Babudar, or ‘Chiefsaholic,’ sentenced to more time in prison after bank robbery spree
    May 13, 2025
    Where in the world are babies at the lowest risk of dying?
    Where in the world are babies at the lowest risk of dying?
    May 13, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    2025 Cloud Mining Gold Rush: 5 Platforms That Pay While You Sleep
    2025 Cloud Mining Gold Rush: 5 Platforms That Pay While You Sleep
    May 13, 2025
    Strategy Pumps Fresh .34 Billion Into Its Crypto Coffers
    Strategy Pumps Fresh $1.34 Billion Into Its Crypto Coffers
    May 13, 2025
    Coinbase (COIN) Shares Jump 8% Post-Market on S&P 500 Inclusion
    Coinbase (COIN) Shares Jump 8% Post-Market on S&P 500 Inclusion
    May 13, 2025
    Price predictions 5/12: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI
    Price predictions 5/12: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI
    May 13, 2025
    Bitcoin profit taking at 6K the first stop before new all-time BTC price highs
    Bitcoin profit taking at $106K the first stop before new all-time BTC price highs
    May 13, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Asian shares tumble as traders brace for global volatility
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > Asian shares tumble as traders brace for global volatility
Asian shares tumble as traders brace for global volatility
Business

Asian shares tumble as traders brace for global volatility

Published August 5, 2024
Share
6 Min Read
SHARE

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Japanese stocks plunged on Monday, pitching the country’s major indices into their third straight session of big declines as global markets were rattled by the prospect of a US recession.

In a rout that produced declines in other Asian markets, Japan’s broad Topix was down as much as 7.3 per cent, virtually wiping out gains for the year. The Nikkei 225, which on Friday suffered its biggest one-day fall since the 1987 crash, was down 5.9 per cent.

The sell-off in Japan was likely to continue in Europe and the US, said traders in Tokyo. Investors are prepared for renewed volatility on fears that the Federal Reserve has been too slow to respond to signs the US economy is cooling and may be forced to cut interest rates.

Traders in Tokyo said the selling was part of a major correction and de-risking move by global funds. But Tokyo equities were also hit by a yen that has strengthened by about 9 per cent since mid July.

“The Japanese market is seen by global investors as a warrant on global trade,” said the Japan head of one global pension fund. “So if you are in severe de-risking mode, as a lot of investors are at this point because of US recession fears and geopolitics, it makes sense you take profits in a Japanese market that has done very well so far this year.”

The sell-off in Japan was echoed across other Asian markets. South Korea’s Kospi benchmark was down more than 4 per cent in early morning trading, while the Australian S&P/ASX 200 fell almost 3 per cent. Taiwan’s main stock market index declined more than 6 per cent.

Weak US jobs data on Friday has piled further pressure on a market already buckling under an investor exodus from expensive technology stocks, with the Nasdaq index falling into correction territory last week and haven Treasuries rallying sharply.

“The narrative has literally changed overnight,” said Torsten Slok, chief economist at Apollo. Investors were weighing up whether to treat Friday’s jobs number as a statistical quirk or whether the US was “now in a more severe slowdown period”, he added.

The global turbulence extended to the crypto market, with the price of bitcoin falling more than 8 per cent to $54,000 on Monday while the price of ether, another cryptocurrency, has fallen almost 17 per cent.

The Fed kept rates on hold when it met last week, but market reaction after the jobs data indicates that investors believe the central bank may have made a mistake in not cutting rates.

JPMorgan economists joined the growing chorus of Wall Street strategists over the weekend calling for the Fed to reduce rates by 0.5 percentage points at its next two meetings.

Srini Ramaswamy, JPMorgan’s managing director of US fixed income research, wrote on Saturday that he had turned “bullish on volatility” given investors’ newfound uncertainty about the path of interest rates and summer illiquidity.

The Vix index of expected US stock market turbulence — commonly known as Wall Street’s “fear gauge” — climbed as high as 29 points on Friday, the highest since the US regional banking crisis in March last year.

The tech-heavy Nasdaq Composite finished the week 3.4 per cent lower and has declined more than 10 per cent since July’s all-time high. Treasuries rallied, with the yield on the US 10-year hitting its lowest level since December at 3.82 per cent.

Recommended

On Saturday, Warren Buffett’s Berkshire Hathaway disclosed that it had halved its position in Apple in the second quarter, while raising its cash position to a record $277bn and buying Treasuries.

Investors are betting the Fed will lower borrowing costs by more than a full percentage point by the end of the year to counter a weakening economy.

“I think interest rates are too high,” said Rick Rieder, chief investment officer of global fixed income at BlackRock. While the economy was still “relatively strong”, the Fed needed to get rates to around 4 per cent “sooner rather than later”, Rieder said.

However, Diana Iovanel, senior markets economist at Capital Economics in London, said equity “valuations are still far from pointing to an economic cataclysm”.

She added: “Renewed fears of a US recession have increased the chances of additional rate cuts from the Fed. But we don’t think that the US economy will stand in the way of an equity rally for much longer.”

Additional reporting by Philip Stafford and George Steer in London and Harriet Clarfelt and Kate Duguid in New York

#Asian #shares #tumble #traders #brace #global #volatility

TAGGED:AsianBraceglobalsharestraderstumbleVolatility
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article US and Israel bracing for imminent Iranian attack – Axios — RT World News US and Israel bracing for imminent Iranian attack – Axios — RT World News
Next Article North Korea’s Kim Jong Un oversees transfer of missile launchers to border | Weapons News North Korea’s Kim Jong Un oversees transfer of missile launchers to border | Weapons News
- Advertisement -

Latest Post

2025 Cloud Mining Gold Rush: 5 Platforms That Pay While You Sleep
2025 Cloud Mining Gold Rush: 5 Platforms That Pay While You Sleep
Cryptocurrency
Strategy Pumps Fresh .34 Billion Into Its Crypto Coffers
Strategy Pumps Fresh $1.34 Billion Into Its Crypto Coffers
Cryptocurrency
Investment banks lift China growth outlook after surprise trade deal with U.S.
Investment banks lift China growth outlook after surprise trade deal with U.S.
World News
First group of white South Africans lands in U.S. under Trump refugee plan
First group of white South Africans lands in U.S. under Trump refugee plan
World News
Coinbase (COIN) Shares Jump 8% Post-Market on S&P 500 Inclusion
Coinbase (COIN) Shares Jump 8% Post-Market on S&P 500 Inclusion
Cryptocurrency
Price predictions 5/12: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI
Price predictions 5/12: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI
Cryptocurrency
- Advertisement -

You Might Also Like

These 10 stocks usually rise when Nvidia shares fall
World News

These 10 stocks usually rise when Nvidia shares fall

August 5, 2024
‘No one can be above the rules’: San Francisco’s mayor is at war with Elon Musk and it’s getting heated
Business

‘No one can be above the rules’: San Francisco’s mayor is at war with Elon Musk and it’s getting heated

August 1, 2023
Fed’s Neel Kashkari says inflation outlook is positive: ‘The economy continues to surprise how resilient it is’
Business

Fed’s Neel Kashkari says inflation outlook is positive: ‘The economy continues to surprise how resilient it is’

July 31, 2023
Emma Watson’s Brother Alex Watson Shares Insight into Sibling Bond
Entertainment

Emma Watson’s Brother Alex Watson Shares Insight into Sibling Bond

June 27, 2024

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?