Asian shares tumble, led by 4.5% drop in Tokyo following a tech-driven retreat on Wall St
Aug 1, 2024, 9:31 PM | Updated: Aug 2, 2024, 1:42 pm
People pass by an electronic stock board in Tokyo Friday, Aug. 2, 2024. (Kyodo News via AP)
Credit: ASSOCIATED PRESS
(Kyodo News via AP)
BANGKOK (AP) — Shares fell Friday in Asia, with Japan’s Nikkei 225 index slumping nearly 4.7% before regaining some ground.
The declines followed a retreat in U.S. stocks after weak data raised worries the Federal Reserve may have missed its window to cut interest rates before undercutting the economy’s growth.
The Nikkei 225 in Tokyo lost 4.6% to 36,367.97 and the Hang Seng in Hong Kong dropped 2.1% to 16,950.59.
Shares in other Asian markets also sank.
Japanese shares have been pummeled after the central bank raised its benchmark interest rate on Wednesday. That pushed the value of the Japanese yen higher against the U.S. dollar.
A stronger yen tends to hurt overseas earnings of major manufacturers like Toyota Motor. It also might impact arrivals of foreign tourists who have flocked to the country to enjoy bargains thanks to prolonged weakness in the Japanese currency.
On Thursday, the S&P 500 sank 1.4% after a report showed U.S. manufacturing activity is still shrinking. The Dow Jones Industrial Average fell 1.2%, and the Nasdaq composite dropped 2.3%.
