AAP Finance

Japan's Nikkei 225 stock index sinks almost 13 per cent

By AAP Newswire

Aug 5, 2024

A monitor shows the Nikkei 225 stock index in Tokyo, Japan — The Nikkei 225 stock is headed for its worst two-day decline ever. -AP

Japan's Nikkei 225 share index has plunged nearly 13 per cent as investors worried the US economy might be in worse shape than had been expected dumped a wide range of shares.

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The Nikkei index was down 12.9 per cent at 31,290.63 by midafternoon on Monday in Tokyo.

It dropped 5.8 per cent on Friday and is headed for its worst two-day decline ever.

The Nikkei's biggest single-day rout was a plunge of 3,836 points, or 14.9 per cent, on the day dubbed "Black Monday" in October 1987.

It suffered an 11.4 per cent drop in October 2008 during the global financial crisis and fell 10.6 per cent during the aftermath of massive earthquakes and nuclear meltdowns in northeastern Japan in March 2011.

Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday.

The benchmark is about four per cent below the level it was at a year ago.

The wave of selling hit a broad range of companies.

Toyota Motor Corp's shares dropped 11 per cent and Honda Motor Co. lost 13.4 per cent.

Computer chip maker Tokyo Electron dived 15.8 per cent and Mitsubishi UFJ Financial Group plunged 18.4 per cent.