Japanese Finance Minister Shunichi Suzuki stated on Monday that the government was quickly keeping an eye on the markets and working with the central bank, according to Reuters report.
“Which factor is causing the stock market to drop is hard to say?” Suzuki said to reporters, adding that authorities were keeping a close eye on stock market movements.
Finance Minister Shunichi Suzuki addressed the media after Monday’s session saw a 12.4% decline in Japan’s benchmark Nikkei 225 stock index, continuing sell-offs that are trembling global markets as investors become increasingly concerned about the US economy.
The Nikkei 225 closed down 4,451.28 points or 12.40% at 31,458.42 on Monday’s session. The Nikkei 225 hit record highs of over 42,000 in recent weeks, but the euphoria that followed was dampened by a data that showed hiring by US firms fell last month by much more than expected.
The Nikkei 225 saw its biggest two-day slump ever on Friday, falling 5.8%. Its greatest one-day loss was a 3,836-point, or 14.9%, decline on October 20, 1987, often known as “Black Monday.” It was a gloomy Monday: the benchmark fell as much as 13.4% at one point.
Stocks in Tokyo have decreased after the Bank of Japan’s (BoJ) Wednesday increase in its benchmark interest rate. Presently, the Nikkei is 3.8% lower than it was a year ago.
A report by the Associated Press (AP) claims that the Japanese yen’s sustained weakening, which has caused inflation to rise beyond the central bank’s 2% inflation target, was one of the factors motivating the BOJ to boost rates. The dollar was trading at 142.59 yen early on Monday, down from 146.45 late on Friday and far below its peak of more than 160 yen a few weeks prior.