Japan's Nikkei 225 Plunges 6% on Tech Sell-Off
Aug 02, 2024 12:04
Japan's Nikkei 225 index plummeted nearly 6%, driven by a tech retreat on Wall Street and concerns over rising interest rates. Chipmakers and exporters bore the brunt of the selloff.
Tokyo, Aug 2 (AP) Japan's benchmark Nikkei 225 index has dropped nearly 6% in the worst day for Tokyo's market since the pandemic selloffs of 2020.
The drop of 5.8%, or more than 2,000 points, to its close at 35,909.70 left the index near where it was in mid-January, erasing huge gains that had taken the Nikkei past the 40,000 level as enthusiasm for artificial intelligence drove shares in computer chipmakers and other related companies sharply higher.
The declines followed a retreat on Wall Street after weak data raised worries the Federal Reserve may have missed its window to cut interest rates before it undercut economic growth.
Japanese shares also have been pummeled after the Bank of Japan raised its benchmark interest rate. The yen has jumped against the dollar, potentially hurting manufacturers' earnings and deflating a tourism boom.
Early Friday, the yen was trading at 149.07, up from 149.37 late Thursday. (AP)
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