Nikkei Index Plummets Over 4% Amid Renewed US Recession Concerns

The Nikkei 225, Japan's representative stock market index, plunged more than 4% on the 4th due to renewed concerns over a US-led economic recession.

[Image source=AP Yonhap News]

On that day, the Nikkei index closed at 37,047, down 4.24% from the previous session. During the session, it even fell below the 37,000 mark to 36,879.

Semiconductor-related stocks dropped sharply. Tokyo Electron and Advantest plummeted 8.55% and 7.74%, respectively, on the day.

The Nihon Keizai Shimbun (Nikkei) explained that the sharp decline in the New York stock market due to the US economic slowdown affected the Japanese stock market. The previous day, the tech-heavy Nasdaq index and the large-cap S&P 500 index fell 3.26% and 2.12%, respectively.

The Mainichi Shimbun analyzed that the yen's strength was also a factor in the stock market plunge. The strong yen is considered a factor that suppresses the buying sentiment of foreign investors trying to enter the Japanese stock market. The yen price per dollar, which was once in the 146 yen range the previous day, fell to the 144.9 yen range that morning (yen appreciation).

Hayashi Yoshimasa, Chief Cabinet Secretary and spokesperson for the Japanese government, said at a press conference that morning in response to questions about the stock market, "I think it is important to make a calm judgment," adding, "We will closely monitor domestic and international economic and financial market trends with vigilance and cooperate closely with the Bank of Japan (BOJ)."

This content was produced with the assistance of AI translation services.