Japan stocks entered a bear market on Monday, with the Nikkei 225 and Topix dropping over 12%, marking the worst day for the index since 1987. The indexes have fallen more than 20% from their all-time highs on July 11. The sell-off continued from last week, with South Korea’s Kospi falling 8.1% and trading being halted due to circuit breakers. In China, the service sector expanded at a faster pace in July, with the purchasing managers’ index climbing to 52.1. Taiwan’s benchmark index also fell over 8%, while Australia’s S&P/ASX 200 dropped 3.7%.
Investors are awaiting key trade data from China and Taiwan, as well as central bank decisions from Australia and India. The Reserve Bank of Australia is expected to hold rates steady at 4.35%, but markets will monitor the monetary policy statement for further clarity. In the US, stocks fell sharply on Friday following a weaker-than-anticipated jobs report for July, sparking concerns about a potential recession. The Nasdaq entered correction territory, down over 10% from its record high, while the S&P 500 and Dow were also below their all-time highs.
Overall, the global market outlook remains uncertain as investors navigate through ongoing volatility and economic uncertainties.
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