Japan Stocks Fall Sharply After Weak U.S. Jobs Data, Yen Strengthening

   By Kosaku Narioka 
 

Japanese stocks fell sharply again as disappointingly weak U.S. jobs data raised concerns about the world's biggest economy and as the yen strengthened.

The Nikkei Stock Average was recently down 5.2% at 34043.44 on Monday morning, following Friday's 5.8% loss, which was its biggest percentage-point drop since March 2020. The index was briefly down 7.1% earlier on Monday, giving up all the gains made so far in 2024 and falling 21% from its recent closing high.

U.S. jobs growth slowed sharply in July and the unemployment rate rose to its highest level since 2021, the U.S. Labor Department reported Friday. The yen strengthened against the dollar as a result.

The yen was trading at around 145.25 to the dollar on Monday in Tokyo, compared with 148.95 as of Friday's Tokyo stock-market close.

Many analysts expect the Federal Reserve to cut rates at each of its three remaining meetings this year. A handful of economists said Friday that the Fed will need to move faster if it want to improve its odds of short-circuiting an economic downturn.

Financial and exporter stocks led the declines in Tokyo on Monday. Carmaker Subaru Corp. was down 11% and Sumitomo Mitsui Financial Group was 15% lower.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 04, 2024 21:29 ET (01:29 GMT)

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