Tokyo stock exchange collapses, Nikkei 225 loses 585 points
SYDNEY, NSW, Australia – Japanese stocks fell on Tuesday. Equity markets in Australia and China also fell, while Hong Kong remained stable.
The US dollar unexpectedly plunged.
“It’s as if the decline leads to another liquidation today,” Shoichi Arisawa, Managing Director of the Investment Research Department at IwaiCosmo Securities Thomson told Reuters Tuesday.
“The resurgence of the virus is worrying not only in Japan but also in other countries. Investors are becoming cautious about an economic reopening, especially as many Japanese companies are sensitive to the global economy.”
The Tokyo Nikkei fell 584.99 points or 1.97% to 29,100.38.
The Australian All Ordinaries fell 45.90 points or 0.63% to 7,282.10.
China’s Shanghai Composite slipped 4.61 points or 0.13% to 3,472.94.
In the currency markets, sellers weighed on the dollar. Against the euro, it fell to 1.2072. The British pound jumped to 1,4008 by the Sydney close on Tuesday. The Japanese yen was only a fraction stronger at 108.42. The Swiss franc strengthened to 0.9144.
The Canadian dollar rose to 1.2493. The Australian and New Zealand dollars were significantly higher, at 0.7808 and 0.7220 respectively.
Overnight on Wall Street, the Dow Jones industrialists fell 123.04 points or 0.36% to 34,077.63.
The Standard and Poor’s 500 slipped 22.21 points or 0.53 percent to 4,163.26.
The Nasdaq Composite sank 137.58 points or 0.98% to 13,914.73.