Asian Markets Plunge Amid Wall Street Woes

TOKYO (AP) — Asian stock markets experienced significant declines on Thursday, with Japan's Nikkei 225 index plummeting over 1,000 points at one stage, ultimately closing down 3.3% at 37,869.51. The negative sentiment was largely influenced by a sharp drop on Wall Street, where the S&P 500 fell 2.3%, marking its fifth decline in six days. Other regional indices also suffered, with Hong Kong's Hang Seng dropping 1.9% and the Shanghai Composite down 0.6%. Investor concerns were heightened by disappointing earnings reports from major U.S. companies, particularly Google and Tesla, which raised doubts about the performance of the so-called "Magnificent Seven" stocks—Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. These companies have been pivotal in driving the S&P 500 to record highs this year, and their upcoming earnings reports are being closely watched. Tesla's stock fell 12.3% after reporting a 45% drop in profits, while Alphabet's stock faced pressure due to its substantial prior gains. The strengthening yen, which has rebounded from trading above 160 yen to the dollar earlier this month, has also negatively impacted Japanese exporters. Analysts suggest that while smaller stocks have seen some gains due to easing Treasury yields, the overall market remains vulnerable, as the performance of Big Tech stocks heavily influences broader market trends. As investors brace for more earnings reports, the market's focus remains on whether other major companies can meet or exceed expectations, especially in light of recent disappointments.