Asian markets see a 13% decline in the Nikkei and a 5% decline in the Kospi. 

5/8/2024,

Asian markets see a 13% decline in the Nikkei and a 5% decline in the Kospi due to fears of a US recession.

Other major Asian markets also suffered significant losses, with the Australian ASX 200, Hong Kong's Hang Seng, and South Korea's Kospi all plunging by three to eleven per cent.

 

Asia-Pacific Stock Market Sell-Off: On Monday, major indices witnessed substantial declines, putting a lot of strain on the stock markets in the area. A bear market was indicated by the 13% loss in Japan's Nikkei 225 and Topix, the biggest since "Black Monday" in 1987.

Other major Asian markets also suffered significant losses, with the Australian ASX 200, Hong Kong's Hang Seng, and South Korea's Kospi all plunging by three to eleven per cent. 

 

This sell-off continued from the previous week when US Wall Street saw significant drops. Due to a poor employment report that heightened concerns about an approaching recession, the Nasdaq Composite lost 2.43 per cent, the S&P 500 dropped 1.84 per cent, and the Dow Jones Industrial Average fell 1.51 per cent last Friday.

The market decline, according to Geojit experts, is a result of worries over the Federal Reserve's decision to maintain interest rates, which could be an indication of an impending slowdown in the economy.

 

Bigger market sectors also took a hit; the Nifty MidCap index fell 3.7% and the Nifty SmallCap index fell more than 4%.

AVP of research and advisory at Master Capital Services Ltd. Vishnu Kant Upadhyay observed that the Indian indexes have been falling for the past two sessions.

 

Fears about the global market have prompted the Nifty50 and Sensex to fall by roughly 3.5% and 4%, respectively, from their recent highs, in response to depressing US economic data such as non-farm payrolls, manufacturing PMI, and unemployment claims.

 

Despite the current market meltdown, Upadhyay stated that persistent bullish patterns and the Yen carry trade can help the market recover.