Japan’s Nikkei index slides amid US uncertainty

Written by on December 25, 2018

Japan’s main stock market index has plunged, reflecting traders’ worries following a slide on Wall Street.

The Nikkei closed down 5% on Tuesday, its worst finish since April 2017. Indexes in Shanghai, Bangkok and Taiwan also fell.

Investors have been concerned about President Trump’s dispute with the US central bank chief and another government shutdown.

US stocks had their worst Christmas Eve on record.

The Dow Jones index of 30 leading companies fell more than 650 points on Monday, and is on track for its worst December since 1931, during the Great Depression.

Many financial markets in Asia, Europe and North America are closed on Tuesday for Christmas.

In China, the Shanghai composite index fell more than 2% on Tuesday morning.
What triggered the falls?

The Asian markets are believed to be largely reacting to movement in the US and an ensuing shares sell-off by concerned investors.

US-China trade tensions are a factor, as well as reports that President Donald Trump has discussed firing the chairman of the US central bank, Jerome Powell.

The US government has also entered partial shutdown, after Congress refused to fund President Trump’s planned US-Mexico border wall.
Image copyright Reuters

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