The global stock market selloff, which began in the U.S., has now engulfed Japan, leading to a significant drop in the Nikkei 225 and Topix. The situation has sparked concerns among top financial experts.
What Happened: The market downturn, which has been spreading worldwide, is showing no signs of abating. The Nikkei 225 and Topix experienced a 7% drop in a volatile trading session, leading to significant losses in the region.
Mohamed El-Erian, the Chief Economic Advisor at Allianz, highlighted the situation, stating, “The stock market selloff, which started in the US and has been circling the world, continues for now.” He also pointed out that the appreciation of the Yen, currently trading at 145 to the dollar, is adding to the challenges faced by Japanese stocks.
Grant Cardone, a prominent figure in real estate investment and the CEO of Cardone Capital, expressed his concerns about the situation. “Japan stocks plunge 7%, extending last week's rout; other Asia-Pacific markets also fall. Is this the beginning?” he wrote.
Matt Weller, the Global Head of Research at FOREX.com, added to the grim outlook, “Markets are not looking much better on the overnight open than they were last week,” he wrote on X.
Why It Matters: These developments come after the Nikkei 225 and Topix experienced a 7% drop, triggering circuit breakers and halting trading until 9:26:13 a.m. local time.
The broader impact was felt across the Asia-Pacific region, with the MSCI AC Asia Pacific Index falling 2% to 173.20. Japan's Nikkei 225 stock average plummeted 5.60% on Monday and 20% from its July peak, highlighting severe market distress.
These developments have led to warnings from various financial experts. Notably, Peter Schiff cautioned that a further crypto selloff could occur if Bitcoin BTC/USD fell below its July low of $53,717.38.
Meanwhile, Elon Musk suggested that Warren Buffett‘s decision to sell nearly half of its Apple Inc. stock indicates an expectation of a correction.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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