a plunge in global stock markets, economic concerns, and worries about investments funded by a cheap yen.
The benchmark Nikkei 225 stock index in the latest bout of sell-offs has lost about 12.4% and this event is jolting world markets. Now, the Yen has reached its highest value in the last 7 months against the U.S. dollar.
Last Friday the Nikkei had previously dropped by 5.8%, which makes this Monday to be the worst two-day decline ever. The worst single-day decline was on October 19, 1987, when the global market crashed and dropped by about 3,386 points (14.9%). That day was titled “Black Monday” and until now was just a temporary setback.
Also, the European stock market lowered on Monday with Germany’s DAX which dropped 2.3% at 17,267.00. In Paris, the CAC lost today about 1.9% reaching 7,114.33 and in London, the FTSE 100 decreased with 2.1% reaching 8,004.19.
In the U.S.A. Wall Street trading is facing a stock market crash where the S&P lowered 2.5% and the Dow Jones Industrial Average dropped 1.6%.
In Tokyo, since the Bank of Japan raised the benchmark interest rate on Wednesday, the share prices have fallen and the Nikkei compared to last year is now down 3.8%. In Japan the Yen also has dropped dramatically to 142.37 yen from 146.45, a significant decrease from a few weeks ago when the level was a little bit over 160.
But the latest news about the stock market has affected computer chipmakers like Samsung Electronics and other technology companies where the Kospi based in South Korea, has dropped more than 9% and Samsung’s stock market sank 10.3%.
It looks like the Asian side got more in trouble, as the countries and stock markets from this side had more problems, like Taiex based in Taiwan, which lost 8.4%, and Taiwan Semiconductor Manufacturing Co., the biggest chip maker in the world, lowered with almost 10%.
We note that following this fall on Nikkei 225 this Monday, many other stock markets have been quite affected and have recorded considerable drops.
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