- Stocks in Japan have been completely thrashed in morning trade, with the benchmark Nikkei index falling more than 3% at one point.
- Sharp selloff in US markets drove demand for the Japanese yen, which is often considered a safe-haven asset alongside US bonds and gold.
- A stronger currency often exacerbates falls for Japanese stocks, given many of Japan’s biggest companies are export-intensive.
As the global stock selloff extends in Asia, stocks in Japan have been belted in morning trade.
Traders hit the sell button as soon as markets opened at 9.00pm ET. The Nikkei 225 closed down 2.8% but at one point, was down more than 3%.
It follows a sharp selloff in US markets, as fear takes hold amid a backdrop of rising interest rates and increasing signs of a slowdown in global economic growth.
The risk-off tone overnight drove demand for the Japanese yen, which is often considered a safe-haven asset alongside US bonds and gold.
A stronger currency often exacerbates falls for Japanese stocks, given many of Japan’s biggest companies are export-intensive.
The Nikkei has now fallen by almost 12% in the month of October alone.
The recent declines across Asian markets have seen the MSCI Asia Pacific Index fall into a bear market, with declines of 20.3% since late January.
SEE ALSO: How much world political leaders in 45 countries earn compared with the average citizen