Japan's Stock Market Suffers Biggest One-Day Loss Ever
Global Sell-Off Intensifies After Weak US Jobs Data
Nikkei 225 Index Crashes Over 7%
Japan's stock market suffered its biggest ever one-day points loss on Monday as a global sell-off intensified following weak US jobs data.
The Nikkei 225 stock index crashed over 7% early Monday, extending sell-offs that began last week. At one point, the Nikkei shed more than 10%, its worst losses since 1987.
The selloff was partly due to the Bank of Japan's decision to maintain its ultra-loose monetary policy, which has weakened the yen and made Japanese stocks less attractive to foreign investors.
Fears about the health of the US economy are also hitting Japan's stock market. The US economy added only 131,000 jobs in July, well below expectations. This has raised concerns that the US economy may be slowing down, which could hurt demand for Japanese exports.
Conclusion
The sell-off in Japan's stock market is a reminder that the global economy is still facing significant challenges. The COVID-19 pandemic has had a devastating impact on the world economy, and it is still unclear when the economy will fully recover. In the meantime, investors should be prepared for further volatility in the stock market.
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