Employees at the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), witnessed significant market declines on Thursday, Jan. 4, 2024. Asia-Pacific markets plunged on Wednesday, primarily driven by a sell-off in U.S. tech stocks and weak economic data from the U.S., which ignited fears of a recession.
Japan’s Nikkei 225 experienced a sharp decline of 3.06%, leading the losses in the region. The broader Topix index also fell by 2.42%. South Korea’s Kospi dropped by 2.59% soon after opening, while the smaller Kosdaq suffered a 3.05% loss. Australia’s S&P/ASX 200 decreased by 1.37%. Meanwhile, Hong Kong’s Hang Seng index futures stood at 17,487, lower than the previous close of 17,651.49.
In the U.S., the semiconductor sector faced substantial losses, highlighted by Nvidia’s plunge of over 9% in regular trading. This decline adversely affected other chipmakers, including Intel, AMD, and Marvell. Consequently, the VanEck Semiconductor ETF (SMH), which tracks semiconductor stocks, fell by 7.5%, marking its worst performance since March 2020.
The ISM manufacturing index for August stood at 47.2%, up slightly from July’s 46.8% but still below the 47.9% forecasted by Dow Jones. An index reading below 50% indicates economic contraction.
All three major U.S. indexes saw their worst declines since the global sell-off on August 5. The Dow Jones Industrial Average dropped by 1.51%, the S&P 500 fell by 2.12%, and the Nasdaq Composite recorded the largest loss at 3.26%.
This report underscores the far-reaching impact of U.S. economic performance on global markets, particularly in Asia. The ongoing recession concerns and tech sector volatility pose continued risks for investors globally.
—Contributions by CNBC’s Fred Imbert and Alex Harring
Original Story https://www.cnbc.com/2024/09/04/asia-pacific-markets-set-to-fall-after-recession-fears-heighten-nvidia-tumbles.html
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