Japanese stock market down hard, AEX also down; fears of recession in US

This article was last updated on August 5, 2024

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Japanese stock market down hard, AEX also down; fears of recession in US

The stock market in Japan has started the week dramatically. The Nikkei index closed down 12 percent. That was the largest daily loss since 1987. In response, the AEX in Amsterdam is now down more than 3 percent at 849 points. The main index already lost more than 3 percent on Friday. The tech companies ASML, Besi and ASMI in particular are declining further.

The MidKap in Amsterdam loses 2.6 percent this morning to 832.73 points. The stock markets in Frankfurt, London and Paris fell to 3 percent.

The main index in Tokyo fell to its lowest level in seven months today. Japanese export companies such as Toyota were hit particularly hard. The Nikkei lost more than 20 percent of its value in the last three trading days compared to last month’s record level.

The signs also turn red at other fairs. In Seoul, trading was even temporarily halted and the Kospi fell 9 percent in the meantime. The Sydney stock market fell 3.6 percent and the Hang Seng index in Hong Kong lost 2.6 percent.

Major loss ASML

After heavy price losses last Friday, the tech companies ASML, Besi and ASMI fell sharply again this morning on the Amsterdam stock exchange. The red numbers this morning rose to 12 percent. The banks are also having to pay the price for fear of a recession. ING and ABN Amro lost 7 and 4 percent. After all, in a recession there is a chance that customers will no longer be able to repay their loans.

Since the end of last week, investors have been fearing a recession in the US. According to them, this is because the US Federal Reserve waited too long to lower interest rates and is now lagging behind.

On Friday it emerged that employment growth in the United States weakened considerably in July. That exacerbated concerns about a slowdown in the world’s largest economy and the US labor market.

Japan correspondent Anoma van der Veere:

“I see a push notification on my phone every now and then. They are not used to these figures in Japan. With this plunge – 4,400 points off – there is a lot of fear of a recession. Everyone thinks back to that time in the late 1980s, when a years-long crisis also started with a crash on the stock market.

The Japanese government, which usually keeps aloof, has also responded. The Cabinet Secretary said that the price falls are seen as an urgent problem and the government says it will take measures if necessary. That way they try to calm people down a bit.”