Asia Stock Market Crash: These Indian companies will be directly affected
Asia Stock Market Crash: Biggest fall in Japans Nikkei 225 since 1987: US President Donald Trump is getting cornered in his own country after imposing retaliatory tariffs on many countries, including India. The US market is also setting new records of continuous decline. American people are also protesting against Trump in large numbers. However, Trump’s decision is affecting the markets of the entire world.
After the retaliatory tariffs imposed by US President Donald Trump, markets around the world are trading in the shadow of fear and apprehension. The US market is also faltering amid the threat of a trade war. On Friday, the US market on Wall Street suffered a severe fall, with Japan’s stock benchmark mirroring the move and falling heavily on Monday.
Japan’s Nikkei 225 stock index fell by almost 13 percent. Investors were worried that the US economy could be in a worse condition than expected. Due to this, they sold many stocks. By Monday afternoon in Tokyo, the Nikkei index fell 12.9 percent to 31,290.63. On Friday, it fell by 5.8 percent and is leading to its worst two-day decline ever.
The Nikkei’s biggest single-day drop was a 3,836-point, or 14.9 percent, drop in October 1987 on what became known as “Black Monday.” It fell 11.4 percent in October 2008 during the global financial crisis, and 10.6 percent in March 2011 after a massive earthquake and nuclear meltdown in northeastern Japan.
Share prices in Tokyo have fallen since the Bank of Japan raised its benchmark interest rate on Wednesday. The benchmark is now about 4 percent below its level a year ago.
This wave of selling affected many companies. Shares of Toyota Motor Corporation fell 11 percent. Shares of Honda Motor Company fell 13.4 percent. Computer chip maker Tokyo Electron fell 15.8 percent and Mitsubishi UFJ Financial Group fell 18.4 percent.
India company affected for stock market
The fall in prices in Japan can have an impact on some Indian companies. Maruti Suzuki can be affected. Experts say that Suzuki can suffer a setback. In such a situation, Maruti’s income can also be directly affected. Along with this, Kokoyo Camlin, Sumitomo Chem can also be affected.
Japan, Australia, and Korea in Shambles
After the opening, about 8 percent of the Nikkei 225 index had declined. The worst was for Australia’s S&P/ASX 200, which was down by more than 6 percent. And then there was South Korea’s Kospi, losing around 4.4 percent.
US Futures:
showing more signs of weakness, S&P 500 futures were down by 4.2 percent, while the Dow Jones Industrial Average was down by 3.5 percent, and Nasdaq was also trading lower down by 5.3 percent.
worst performance after Covid:
Earlier on Friday, Wall Street witnessed its worst performance since Covid. It set a new unwanted record of decline. The S&P 500 fell 6 per cent and the Dow fell 5.5 per cent. The Nasdaq Composite also fell 5.8 per cent.
America is on the back foot after China’s counterattack:
The decline came as China announced new tariffs on the US in retaliation for a major tariff hike announced by President Donald Trump earlier this week.
ALSO READ: Why Is Hanuman Jayanti Celebrated In India?
