Global Markets Face a Turbulent Start as Japan’s Stocks Plunge While Chinese Markets Surge
Login

Global Markets Face a Turbulent Start as Japan’s Stocks Plunge While Chinese Markets Surge

Estimated Reading Time: 3 minutes

Azeez Mustapha

Updated:

Global markets experienced a volatile beginning to the week, with Tokyo’s Nikkei 225 index dropping nearly 5% and Chinese markets soaring on news of fresh stimulus measures for the faltering economy. The Shanghai index saw an impressive rise of over 8%, contrasting sharply with the Japanese market’s struggles.

In early European trading, France’s CAC 40 dropped 1.0% to 7,711.66, Germany’s DAX slid 0.4% to 19,399.02, and London’s FTSE 100 declined by 0.3% to 8,294.70. Meanwhile, the futures for the S&P 500 and Dow Jones Industrial Average edged 0.1% lower.

Japan’s market turmoil followed the election of former Defense Minister Shigeru Ishiba as leader of the ruling Liberal Democrats, replacing Prime Minister Fumio Kishida. Ishiba’s support for raising interest rates and corporate taxes—a stark departure from his rival Sanae Takaichi’s more market-friendly approach—led to the Nikkei closing 4.8% lower at 37,919.55 on Monday.
Global Markets Face a Turbulent Start as Japan’s Stocks Plunge While Chinese Markets Surge Exporters were hit hard as the yen strengthened, with the dollar dropping from over 146 yen to 143 yen. Major carmakers such as Toyota, Honda, and Nissan saw their shares tumble, with declines of 7.6%, 7.0%, and 6.0% respectively.

Chinese Markets Rally Amid Stimulus Efforts

In contrast to Japan’s struggles, Chinese markets soared, with Hong Kong’s Hang Seng climbing 2.4% and the Shanghai Composite Index surging 8.1%. The smaller Shenzhen market saw even greater gains, rising nearly 11%. These rallies came just ahead of a week-long national holiday celebrating 75 years of communist rule in China.

China introduced key measures over the weekend aimed at stabilizing its property market and reviving lagging financial markets. Mortgage rates were slashed, and major cities like Guangzhou, Shanghai, and Shenzhen eased home purchase restrictions to stimulate growth. Despite these efforts, China’s manufacturing sector continues to face challenges, with September marking the fifth consecutive month of contraction.
Global Markets Face a Turbulent Start as Japan’s Stocks Plunge While Chinese Markets Surge Elsewhere in Asia, Australia’s S&P/ASX 200 rose 0.7% to 8,269.80, while South Korea’s Kospi fell 2.1% to 2,593.27. In the U.S., the S&P 500 and Nasdaq composite saw slight declines on Friday, while the Dow Jones Industrial Average set a new record.

In global markets, tensions in the Middle East caused oil prices to rise after Israel launched its first airstrike on Lebanon in nearly a year. U.S. crude added 49 cents to $68.67 per barrel, and Brent crude rose 61 cents to $72.15 per barrel. On the currency front, the euro was trading at $1.1193, up from $1.1163.

Make money without lifting your fingers: Start using a world-class auto trading solution.

LonghornFXyour trusted Partner in CFDs, Cryptocurrencies and Stocks.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News