Stock markets around the world fell Monday, with Japan’s benchmark Nikkei 225 stock index tumbling 12.4 percent , coming close to its biggest single-day fall in October 1987.
The Nikkei index fell 4,451.28 points to 31,458.42. Other markets fell across the region: South Korea’s Kospi index by 8.77 percent; Taiwan’s Taiex by 8.35 percent; Australia’s S&P/ASX 200 by 3.7 percent;Hong Kong’s Hang Seng Index was down by 1.46 percent; and China’s Shanghai Composite stock market index by 1.54 percent.
European and U.K. markets fell by about 2 percent in early trading Monday. London’s FTSE 100 dropped over 1.5 percent, hitting its lowest in over three months, Reuters reported, and shares of European tech and semiconductor stocks also plunged.
The dips come after a two-day Wall Street rout attributed to weaker than expected U.S. economic data. Stocks sold off sharply on Friday as the Nasdaq composite index entered correction territory, amid economic worries and poor earnings from multiple leading tech companies. The U.S. Labor Department on Friday reported that the unemployment rate had spiked to 4.3 percent, with employers adding 114,000 jobs in July, a weaker-than-expected showing.
The Nikkei 225 has slid by more than 20 percent since last month, after reaching all-time highs of over 42,000 points in July. The Nikkei suffered a nearly 15 percent fall on Oct. 20, 1987, in the wake of the Black Monday Wall Street crash that year.
“We will watch the market trends with a sense of urgency and take all possible measures to manage the economy and finances,” Yoshimasa Hayashi, Japan’s chief cabinet secretary, said during his regular news conference Monday.
Julia Mio Inuma contributed to this report.