Japan’s Stock Market Collapses the Most Since 2020 – Asia Market Wrap

Japanese equities fell for a second day on predictions of further monetary tightening in the country, aggravating a worldwide selloff sparked by bad US economic data and technology results.

The Topix index plummeted as much as 5.7%, the biggest since 2020, as the Yen approached its highest since March, weighing on Japan’s export-oriented economy. Shares fell across Asia, from South Korea to Hong Kong, with AI chipmaker SK Hynix down 8.7%.

Meanwhile, Treasuries maintained their surge in Asia, with policy-sensitive two-year rates falling to a 14-month low amid increasing betting on Fed rate reduction following the central bank’s policy meeting on Wednesday. Swap traders increased the number of reductions this year to three from two.

The broader risk-off tone followed data showing that US weekly jobless claims reached a nearly one-year high as manufacturing fell. The tech-led declines were caused by poor earnings forecasts or results from industry behemoths including Intel and Amazon. The focus will now shift to the monthly jobs report, which will be released later Friday.