Japanese Stock Market Bounces Back, Indian and Other Asian Markets Show Gains
Japanese stock markets rebounded during the early trading session on Tuesday, recovering from the losses incurred on Monday. The Nikkei 225 index surged by over 9%, gaining 2,912 points to reach 34,375 points.
India’s Gift Nifty index also showed signs of recovery, rising by 137 points to 24,280 points. Other Asian markets reflected this positive trend, with Hong Kong’s Hang Seng index trading higher, Taiwan’s Taiwan Weighted index increasing by around 1%, South Korea’s KOSPI surging more than 3%, and Indonesia’s Jakarta Composite also trading with gains.
On Monday, global stock markets faced significant pressure. The Japanese markets declined by more than 8%, closing at 31,458.42. Indian markets also experienced a sharp downturn, with the Sensex plunging 2,222.55 points to close at 78,759.40, and the Nifty falling 662.10 points to end at 24,055.60. Among the Nifty companies, only five advanced while 45 declined.
In the United States, the stock market also saw a significant plunge. The Dow Jones Industrial Average (DJIA) opened more than 1,000 points lower and ended the day down by 1,083.07 points, a decline of 2.79%, settling at 38,654.19. The tech-heavy Nasdaq Composite Index experienced an even sharper drop, losing 680.15 points, or 4.05%, to reach 16,196.01. Meanwhile, the S&P 500 fell by 164.67 points, a decrease of 3.11%, landing at 5,181.89.
Globally, markets are reacting after the Sahm Rule got triggered on Friday, as US unemployment reached 4.3%. This rule, developed by macroeconomist Claudia Sahm, signals the onset of a recession when the unemployment rate rises significantly compared to its lowest point over the previous year. The recent rise in US unemployment suggests that the economy may be heading towards a downturn.
Doubts Revealed
Nikkei 225 -: The Nikkei 225 is a stock market index for the Tokyo Stock Exchange in Japan. It includes 225 of the largest companies in Japan.
Gift Nifty -: Gift Nifty is a stock market index in India. It shows how the stock market is performing and is used to predict future trends.
Asian markets -: Asian markets refer to the stock markets in countries like Japan, India, Hong Kong, Taiwan, South Korea, and Indonesia. These markets show how companies in these countries are doing financially.
Sahm Rule -: The Sahm Rule is a way to predict a recession. It looks at the unemployment rate, and if it goes up by a certain amount, it suggests that the economy might be in trouble.
Recession -: A recession is a time when the economy is not doing well. People might lose jobs, and businesses might not make as much money.
Unemployment -: Unemployment means that people who want to work cannot find jobs. A high unemployment rate can be a sign that the economy is struggling.