Japan’s Nikkei falls 12.4% on US recession fears – Business & Economy

TOKYO, August 5. /TASS/. Japan’s Nikkei index, which reflects share price movements of 225 top Japanese companies, was down 12.4 percent by the end of the trading session. Local observers note that this happened amid investor concerns about a possible recession in the US and the strengthening of the yen against the dollar.

Thus, at the end of the trading session, the Nikkei index lost 4,451.28 points and fell to 31,458.42 points. This is an all-time low, surpassing the “Black Monday” of 1987, when the Nikkei lost 3,836.33 points during trading.

Local observers attributed the decline in the Tokyo stock market to fears of a possible recession in the United States, where employment data on August 2 came in below market expectations. The slide continued after last Friday’s slide, when the Nikkei index fell 5.8 percent on weak US manufacturing data for July.

According to Chief Cabinet Secretary Yoshimasa Hayashi, the Japanese government does not comment on the stock market situation because stock prices are determined by the market, but is closely monitoring the situation.

Another factor in the decline is the strengthening of the national currency, which is unfavorable for large exporters. On Monday, its rate reached about 142.6 yen to the dollar.