Concerns about the US economy plunge the markets: Nikkei and cryptocurrencies plummet

The Tokyo stock exchange plunged Monday and the Nikkei index suffered the biggest point drop in its history, weighed down by the yen rally and the concerns about the U.S. economy, which also caused sharp falls in both Seoul and Taiwan.

The Nikkei 225, Japan's main stock market index, which had already fallen 5.8% on Friday, plunged 12.4%, or 4,451.28 points, to close at 31,458.42 points beating its record loss, which dated back to the stock market crash of October 1987.

The broader Topix index fell 12.23% to 2,227.15 points.

The Japanese currency, which was trading at nearly 162 yen to the dollar in July, rebounded on Monday to 141.73 per greenback, a level not seen since early January, from 146.52 yen in New York on Friday. A stronger yen is a negative factor for Japanese exporters.

The recent rally has been driven by policy decisions by Japan's central bank, which last week raised its interest rates for the second time in 17 years and may do so again soon while the U.S. Federal Reserve hinted it will lower its own possibly starting in September.

"Investor sentiment was hit by US jobs data in July, which came in lower than expected, raising fears that the US economy will slow more than expected," brokerage firm IwaiCosmo Securities said in a statement carried by AFP.

On the other Asian markets, Taiwan's Taiex index fell by more than 8% and Seoul's KOSPI by 9.6% at 06:15 GMT.

Chinese stock markets fell more moderately: the Hang Seng index in Hong Kong dropped 2.7%, the Shanghai Composite index by 1.4% and the Shenzhen index by 1.8%.

Cryptocurrencies plunge

The cryptocurrency market also recorded strong losses amid weak economic indicators such as poor employment data in the United States, slowing growth in major technology stocks, geopolitical tension, the brutal increase in debt and fears of an imminent recession. 

Thus, the crypto market recorded in three days its biggest sell-off in if a year, losing more than 510 billion dollars since last Friday. 

In this context the bitcoin, the most used cryptocurrency, plummeted this Monday about 10%, to around $50,000.

European stock markets fall

The bad day in the Japanese markets was reflected in the opening of the European stock markets.

Thus, the start of the stock market session in the Old Continent was also marked by red numbers on Monday.

Frankfurt lost more than 3% at the opening; Paris fell by 2.6%; London by 2.3%; Milan by 4% and Madrid by 3%.