Asian stocks collapse, Nikkei tumbles past Black Monday milestone
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00:00And Japan's Nikkei plunged 12.4% today as Asian stocks tanked after new U.S. data fan
00:06fears of a recession. Investors are worried the U.S. economy may be in worse shape than
00:11had been expected and dumped a wide range of shares. To give some context, that was
00:15the Nikkei's worst drop since Black Monday in 1987. The change came after unexpectedly
00:21bad job news in the U.S. Friday, the fear of war in the Middle East and the Bank of
00:25Japan raising its benchmark interest rate on Wednesday. Here's more from an analyst
00:30on the situation in Asia.
00:35I think there is some panic selling happening here. The main triggers have been concerns
00:40over the U.S. economy, along with interest rates rising in Japan, with an unexpectedly
00:46hawkish tone from the Bank of Japan Governor Kazuo Ueda last week. The background is that
00:54up to now, short-term investors have been piling into Japanese stocks, and we're seeing
00:59those positions being unwound all at once.
01:04And the markets are down across Europe, too. The Quai Cahont in Paris down 2.3%, Dax in
01:09Frankfurt down 2.3%, and the London FTSE down 2%.