Asia-Pacific Stocks Plunge, Bear Markets Confirmed

Asia-Pacific stock markets were under intense pressure, with heavy declines across major indices. The Nikkei 225 and Topix in Japan tumbled 13 per cent, confirming a bear market and marking the worst drop since ‘Black Monday’ of 1987.

Other key Asian markets also suffered heavy losses, with South Korea’s Kospi, Hong Kong’s Hang Seng, and Australia’s ASX 200 all plunging between 3 per cent and 11 per cent. 

This sell-off extended from last week, following sharp declines on US Wall Street. Last Friday, the Nasdaq Composite fell 2.43 per cent, the S&P 500 dropped 1.84 per cent, and the Dow Jones Industrial Average decreased by 1.51 per cent, driven by a weak jobs report that heightened fears of an impending recession.

Geojit analysts attribute the market downturn to concerns over the Federal Reserve’s decision to keep interest rates steady, which may signal a potential economic slowdown. Traders are worried that the Fed may be slow to cut rates in response to the US economic deceleration, compounded by weaker-than-expected employment data.

The global market rout had a major impact on Indian stock exchanges as well. The BSE Sensex plunged 3.31 per cent, or 2,686.09 points, to an intraday low of 78,295.86. Similarly, the Nifty50 fell 3.33 per cent, or 824 points, reaching an intraday low of 23,893.70.

Individual stocks were hit hard, with Tata Motors, Tata Steel, among others, seeing declines of up to 10 per cent. 

Broader market segments also bled, with the Nifty SmallCap index falling over 4 percent and the MidCap index slipping 3.7 per cent.