Asian stock markets tumbled sharply on Monday, following a broad global sell-off driven by mounting fears of a U.S. economic recession.
Traders reacted strongly to weak U.S. monthly jobs data and disappointing figures on American manufacturing activity, rattling confidence across the region.
The weak data sparked concerns that the U.S. Federal Reserve may have waited too long to cut interest rates, potentially pushing the world’s largest economy toward recession.
Markets in Japan, South Korea, and Taiwan led the regional decline, each plummeting more than 5 percent during Monday’s session.
Japan’s benchmark Nikkei 225 Index closed the morning session at 34,247.56, down 1,662.14 points or 4.63 percent, registering its second-largest point drop in history and the biggest single-day losses since 2020.
Among Japan’s worst performers, Minebea Mitsumi plummeted almost 19 percent, while Sumitomo Mitsui Financial plunged almost 16 percent and Mitsubishi Heavy Industries fell almost 16 percent.
Japanese automakers also took heavy hits, with Honda plummeting almost 9 percent and Toyota declining almost 8 percent, as a stronger yen weighed on export-dependent companies.
Australia’s benchmark S&P/ASX 200 Index fell 209.70 points or 2.64 percent to 7,733.50, with weakness spread across energy, financial, and technology sectors.
Afterpay owner Block plunged more than 9 percent, while Zip slid almost 9 percent and gold miner Resolute Mining declined almost 7 percent among Australian losers.
Among Australia’s big four banks, Westpac declined almost 4 percent, while Commonwealth Bank, National Australia Bank, and ANZ Banking each lost more than 3 percent.
In economic data from Australia, the services sector continued to expand in July but at a slower pace, with Judo Bank’s services PMI scoring 50.4, down from 51.2 in June.
The unexpected rise in the U.S. unemployment rate reached its highest level since hitting 4.5 percent in October 2021, further stoking recession concerns among investors globally.
Elsewhere in Asia, Taiwan and South Korea plummeted 6.3 and 5.1 percent respectively, while New Zealand, Malaysia, Singapore, and Indonesia each plunged between 1.7 and 2.8 percent.
On Wall Street, the Nasdaq dove 417.98 points or 2.4 percent to 16,776.16, the S&P 500 plunged 100.12 points or 1.8 percent to 5,346.56, and the Dow tumbled 610.71 points or 1.5 percent to 39,737.26.
European markets also fell sharply, with Germany’s DAX plunging 2.3 percent, France’s CAC 40 tumbling 1.6 percent, and the U.K.’s FTSE 100 slumping 1.3 percent.
Crude oil added to the pressure, with West Texas Intermediate futures for September falling $2.79 or 3.66 percent to $73.52 a barrel, sliding to a two-month low on demand concerns.
