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Home / Business / Japan's Nikkei crashes after Wall Street's newest slide

Japan's Nikkei crashes after Wall Street's newest slide



Japanese shares eased on Tuesday and other Asian markets after Wall Street's massive losses were triggered by President Donald Trump's attack on the US Federal Reserve.

The Nikkei 225

NIK, -4.65%

fell with an unusually broad margin of about 5%, reaching its lowest level since May 2017. Losses were widespread, all 33 sub-sectors of the Tokyo Stock Exchange posted losses. Fuji Electric

6504, -6.93%

decreased by 7%, SoftBank Group

9984, -6.74%

had dropped by 7%, Fast Retailing

9983, -4.06%

fell 4.5% and Toyota

7203, -5.19%

decreased by 5%.

China's Shanghai Composite Index

SHCOMP, -1.96%

lost 2.4%, while the Shenzhen Composite had a smaller market capitalization

399106, -2.29%

fell 2.8%. Taiwan's benchmark index

Y9999, -1.17%

also fell by more than 1%.

The markets in Hong Kong, Australia and South Korea were closed for Christmas.

"The sell-off is almost completely unleashed Takiot Hiroki, chief strategist for Monex Securities in Tokyo, told CNBC.

Wall Street indexes fell more than 2% on Monday after Trump said on Twitter that the Federal Reserve was "the only problem of the US economy." Treasury Secretary Steven Mnuchin's efforts to calm investors' concerns only seemed to worsen the situation.

US. Stocks are for their worst December since 1931 during the Great Depression.

Read: Which Stock and Bond Markets Close and When to Christmas and New Year's Holiday

The market is upset by fears over a slowing global economy, the trade dispute with China, and another rate hike by the Fed.

Trump's Monday morning tweet heightened fears that the economy will be destabilized by a president who wants control of the Fed. Its board members are nominated by the president, but they make decisions independently of the White House. Executive Chairman Jerome Powell was nominated by Trump last year.

"The only problem our economy has is the Fed," the president said on Twitter. "They have no sense of the market, they do not understand the necessary Trade Wars or Strong Dollars or even the Democrats across borders." The Fed is like a mighty golfer who can not score because he has no touch – he can not putt! "

The S & P 500 Index

SPX, -2.71%

fell 2.7% to 2,351.10. The benchmark index has now fallen 19.8% from its high of 20 September, close to the 20% decline that would officially mark the end of the longest bull market for equities in modern history – a term of nearly 10 years.

The Dow Jones Industrial Average

DJIA, -2.91%

fell 2.9% to 21,792.20. The Nasdaq slipped 2.2% to 6,192.92.

On Sunday, Mnuchin made a series of calls to the six largest US banks, but the move only brought new concerns about the economy with slowing down in 2019, not slipping into a full blown recession. However, the president has expressed his anger over the Fed's decision to raise interest rates four times in 2018. This should protect the economy from overheating.

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