According to Bloomberg, a massive collapse of stock indices has been recorded on markets across the Asia-Pacific region. The situation is defined as catastrophic. So, urgent action is needed to address it.
The news agency notes that an abrupt slump in stock indices was driven by poor performance in local high-tech stocks. As a result, major regional stock indices suffered huge losses. Japan's TOPIX sank by 10.6%, making its sharpest intraday drop since 1987. The Nikkei index tumbled by a whopping 13.4%.
The negative dynamics extended to many trading platforms in the Asia-Pacific region. The Taiwan Taiex index plunged by 8.4%, and the Korean Kospi index dropped by 8%. The MSCI Asia Pacific index fell by 4.9%, its worst result since 2020. Experts attribute this decline to the fall in shares of high-tech giants such as TSMC, Samsung Electronics, Toyota Motor, and Mitsubishi UFJ Financial Group, which accounted for nearly 25% of the MSCI index's losses.
Earlier, Bloomberg reported that Japan’s authorities are facing a difficult choice: whether to focus on the stability of the yen or to prioritize support for the local stock market. Currently, Japanese monetary officials have managed to find a balance. However, the risk of a recession in the US could sharply strengthen the yen against the US dollar, which may put significant bearish pressure on Japanese stocks, experts conclude.
