Asian markets rebound- Nikkei Soars, Gift Nifty shows sign of recovery
Aug 06, 2024
New Delhi [India], August 6 : Japanese stock markets rebounded during the early trading session on Tuesday, recovering from the losses incurred on Monday.
The Nikkei 225 index surged by over 9 per cent, gaining 2,912 points to reach 34,375 points at the time of filing this report.
India's Gift Nifty index also showed signs of recovery, indicating that Indian markets may start with gains. The Gift Nifty index rose by 137 points to 24,280 points.
Other Asian markets reflected this positive trend, with Hong Kong's Hang Seng index trading higher, Taiwan's Taiwan Weighted index increasing by around 1 per cent, South Korea's KOSPI surging more than 3 per cent, and Indonesia's Jakarta Composite also trading with gains.
Global stock markets faced significant pressure on Monday. The Japanese markets declined by more than 8 per cent, closing at 31,458.42.
Indian markets also experienced a sharp downturn, with the Sensex plunging 2,222.55 points to close at 78,759.40, and the Nifty falling 662.10 points to end at 24,055.60. Among the Nifty companies, only five advanced while 45 declined, underscoring the market's bearish sentiment.
In the United States, the stock market also saw a significant plunge. The Dow Jones Industrial Average (DJIA) opened more than 1,000 points lower and ended the day down by 1,083.07 points, a decline of 2.79 per cent, settling at 38,654.19.
The tech-heavy Nasdaq Composite Index experienced an even sharper drop, losing 680.15 points, or 4.05 per cent, to reach 16,196.01. Meanwhile, the S&P 500 fell by 164.67 points, a decrease of 3.11 per cent, landing at 5,181.89.
Globally, markets are reacting after the Sahm Rule got triggered on Friday, as US unemployment reached 4.3 per cent. This is predicting a US recession.
The "Sahm Rule," a recession indicator developed by macroeconomist Claudia Sahm, who has served at both the Federal Reserve and the White House Council of Economic Advisers, is designed to signal the onset of a recession when the unemployment rate rises by a significant margin compared to its lowest point over the previous year.
The recent rise in US unemployment to 4.3 per cent has activated this rule, suggesting that the economy may be heading towards a downturn.
