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Tokyo Market Summary: Nikkei average down 4451 yen, the largest historical decline, with the market experiencing rapid fluctuations leading to 'everyone selling off'.

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moomooニュース日本株 wrote a column · Aug 5, 2024 14:05
Tokyo Market Summary: Nikkei average down 4451 yen, the largest historical decline, with the market experiencing rapid fluctuations leading to 'everyone selling...
Hello, Moomoo users!Good job on the closing bell. Here is today's overview of the stock market. Thank you.
● The Nikkei average closed at 31,458.42 yen, down 4,451.28 yen from the previous trading day.
● Nikkei average enters a 'bearish market', wiping out this year's gains.
● Bank stocks continue to plummet significantly, with Mitsubishi UFJ Financial Group experiencing its largest decline rate to date - driven by awareness of declining long-term interest rates.
● Circuit breaker triggered in Nikkei average futures at Osaka Exchange due to rapid market fluctuations.
● Yen momentarily at 142 yen level, rising by 4 yen since morning, reaching the highest yen strength level in 7 months.
Bitcoin and Ethereum hit a several-month low amid concerns of a US economic slowdown.
Global bond markets erase the year-to-date decline - fears of deteriorating US economic outlook spreading.
Hot Stocks: $Nintendo (7974.JP)$ $Toyota Motor (7203.JP)$ $Mitsui Fudosan (8801.JP)$ $Mitsubishi UFJ Financial Group (8306.JP)$ $Sumitomo Mitsui Financial Group (8316.JP)$etc
- moomoo news on individual Japanese stocks Sherry
Market Overview
On today's Tokyo stock market, the Nikkei Stock Average closed at 31,458.42 yen, down 4,451.28 yen from the previous trading day, and the Tokyo Stock Price Index (TOPIX) closed at 2,227.15, down 310.45 points.
Top News
Nikkei Stock Average down 4,600 yen: "everyone selling" due to sudden market volatility.
The decline exceeded the 3,836 yen of Black Monday, the day after the largest drop in U.S. stocks on record, which occurred on October 20, 1987. Market participants such as overseas institutional investors, hedge funds, and individual investors all moved to sell. It fell below the closing price at the end of 2023 (3.464 million yen), wiping out all the gains since the beginning of 2024. There are also voices pointing out further downside, and market confusion continues.

Nikkei Average enters a bearish market, erasing this year's gains.
Following the release of the July employment statistics on the 2nd, concerns about a downturn in the U.S. economy further intensified, and the Tokyo market at the beginning of the week took on a critical appearance. Many stocks plummeted, $Mitsubishi UFJ Financial Group (8306.JP)$Dropped 20% at one point, $Sumitomo Mitsui Financial Group (8316.JP)$and $Dai-ichi Life Holdings (8750.JP)$hit the limit down, $Mizuho Financial Group (8411.JP)$and all were sold off with a 14% drop.
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The Bank of Japan accelerated the sell-off by overseas investors.
The continued decline of the Nikkei Stock Average - Chief Cabinet Secretary stating "continue to monitor"
Bank stocks continued to fall significantly, with Mitsubishi UFJ Financial Group (MUFG) seeing the largest rate of decline in history -awareness of the decrease in long-term interest rates.
Circuit breaker activated for Nikkei futures on Osaka Exchange.
On the 5th, the Osaka Exchange activated a circuit breaker to temporarily halt trading for Nikkei futures, which experienced a sharp decline.
Yen exchange rate temporarily in the 141 yen range, reaching a 7-month high for yen appreciation.
On the 5th, the foreign exchange market in Tokyo saw the yen exchange rate against the dollar temporarily rise to 141 yen. This marks the highest level of yen appreciation and dollar depreciation in approximately 7 months since early January. Since the release of the US employment statistics for July, which significantly fell below market expectations, the dollar has been sold off against a wide range of currencies due to concerns about the future of the US economy.
Related Articles
Yen depreciation is a factor contributing to upward pressure on prices, and careful attention is necessary in the management of monetary policy - Bank of Japan June meeting.
Bitcoin and Ethereum reach multi-month lows due to concerns about US economic contraction.
On the 5th, the prices of cryptocurrencies such as Bitcoin and Ethereum hit multi-month lows due to increased demand for safe-haven assets amid concerns about a recession in the US economy. Bitcoin briefly fell to $53,091, the lowest level since late February. The latest price is $54,112.
世界の債券相場は年初来の下げを帳消しにしている。米経済見通しが急速に悪化しつつあるとの懸念で、債券資産への需要が喚起された。世界の投資適格級の国債と社債のトータルリターンを反映するブルームバーグ・グローバル総合指数は年初来騰落率が現時点で1%上昇となっている。先週だけで2.3%上げた。4月半ば時点では4.6%下落していた。

Hot stocks
トヨタが14%超安、1ドル=142円台へ急速に円高が進行◇
$Toyota Motor (7203.JP)$の下げ幅が14%を超えた。連日で年初来安値を更新している。日経平均株価が記録的な下げを続けるなかで、ドル円相場は一時1ドル=142円台まで急速にドル安・円高が進行している。円安を背景とした自動車株に対する業績期待が後退する格好となり、自動車株に対しては断続的な売りが続いている。 $Nissan Motor (7201.JP)$and $Honda Motor (7267.JP)$も急落し、年初来安値を更新。
任天堂が一時17%安、年初来安値を更新 1Q決算の大幅減収減益での着地を嫌気
$Nintendo (7974.JP)$The stock fell temporarily by 17% and hit a new low for the year. The first quarter earnings announced last week showed a 46% decrease in revenue compared to the same period last year, and operating profit decreased by 70%, resulting in a significant decline in revenue and profit. This seems to have strongly dampened market sentiment.

Mitsui Fudosan's stock dropped 9%, despite achieving record-high operating profit in the April-June quarter. The market appears to be concerned about the Bank of Japan's potential interest rate hikes.
$Mitsui Fudosan (8801.JP)$The stock has experienced a significant 4-day consecutive decline, dropping to a low of 1,242 yen, a 9.4% decrease. The consolidated financial results for the April-June 2024 period, announced on the 2nd, showed an operating profit of 101.2 billion yen, a 26% increase compared to the same period last year, setting a new record for the quarter. This exceeded the market's average forecast of 88.6 billion yen (as of the 17th, according to QUICK Consensus, 5 companies). However, it is being pushed down by selling pressure due to worsening market conditions overall and concerns about the negative impact of additional interest rate hikes by the Bank of Japan on earnings.
Source: Reuters, The Nikkei, Bloomberg, gamebiz, MINKABU
Tokyo Market Summary: Nikkei average down 4451 yen, the largest historical decline, with the market experiencing rapid fluctuations leading to 'everyone selling...
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