Market Turmoil as SoftBank and Tech Stocks Plummet Amid Economic Concerns
- Japan's Nikkei Index has dropped over 3%, reflecting a broader trend in Asia-Pacific markets that are tracking a sell-off on Wall Street.
- This decline comes as South Korea reports annual GDP growth of 2.3%, falling short of the expected 2.5%.
- Market analysts are closely monitoring these developments to assess their impact on the regional economy.
On July 24, 2024, the Nikkei index experienced a significant downturn, with SoftBank Group's shares plummeting by 9.39%. Renesas Electronics led the losses, dropping over 14%. This decline comes as the Bank of Japan prepares to discuss a potential interest rate hike during its upcoming monetary policy meeting on July 30 and 31, alongside plans to reduce bond purchases. Investors are also reacting to South Korea's second-quarter GDP figures, which fell short of expectations, showing a 0.2% contraction compared to a predicted 0.1% growth. The South Korean market was further impacted by SK Hynix, which saw its stock drop 8.87% despite reporting record quarterly revenue of 16.42 trillion won ($11.85 billion) for the second quarter, a 125% increase from the previous year. This stark contrast highlights the volatility in the market, as the company had previously reported losses during the same period last year. Meanwhile, the Hong Kong Hang Seng index fell by 1.8%, and mainland China's CSI 300 index decreased by 0.55%, reaching its lowest point since February. In the United States, the S&P 500 and Nasdaq Composite faced their worst trading days since 2022, with the S&P losing 2.31% and the Nasdaq dropping 3.64%. The Dow Jones Industrial Average also fell by 1.25%, shedding 504.22 points. Major tech stocks, including Nvidia and Meta Platforms, saw significant declines, with Alphabet experiencing its largest single-day drop since January 31.