Japanese Stocks Plunge, US Shutdown Disturbs Sentiment
Japanese stocks weakened on Wednesday after the US government shutdown officially began. The shutdown sparked market concerns about the delay in the release of key US economic data, which will guide the Fed's future interest rate direction. The Topix index fell 1.4% to 3,094.74, while the Nikkei index also fell 0.8% to 44,550.85.
The banking sector was the biggest contributor to the decline. Mitsubishi UFJ Financial Group shares plunged 4.4%, dragging the Topix index lower. Of the 1,673 stocks monitored, only 127 rose, while 1,537 others declined and nine remained unchanged.
According to analysts, investors began dumping previously strong performers—such as banks and insurance companies—due to concerns that the turmoil in the US could disrupt global funding conditions. This situation quickly shifted market sentiment and increased selling pressure. (ads)
Source: Bloomberg.com
