What's Affecting Markets Today
Nikkei drops over 10%
Japan’s stock market entered a confirmed bear market on Monday as Asia-Pacific markets continued last week’s sell-off. The Nikkei 225 and Topix indexes both dropped over 10%, marking a decline of more than 20% since their July 11 highs. Major trading houses, including Mitsubishi, Mitsui & Co, Sumitomo, and Marubeni, saw sharp declines of around 10%. Monday’s drop followed Friday’s significant losses, with the Nikkei 225 and Topix suffering their worst days since March 2020 and in eight years, respectively. Concurrently, the yen strengthened to its highest level against the dollar since January, trading at 143.40. Investors are now focused on upcoming trade data from China and Taiwan, as well as central bank decisions from Australia and India. Meanwhile, China’s service sector showed stronger growth in July, with the Caixin PMI rising to 52.1 from 51.2 in June, driven by new business growth and improved demand.
ASX Stocks
ASX 200 - 7,658.0 (-3.6%)
Key Highlights:
The Australian sharemarket is experiencing its steepest sell-off in two years, driven by escalating U.S. recession concerns. The S&P/ASX 200 index has dropped 2.7%, or 220 points, to 7722, extending Friday’s 2.1% decline. This 5% two-day loss marks the worst single-day drop since June 2022, when U.S. inflation surged to a 40-year high, unsettling global markets.
Banks are under heavy pressure, with Westpac and ANZ each falling nearly 4%, echoing similar declines from the previous session. The tech sector is the hardest hit on the ASX, down over 4%, with Block, the owner of Afterpay, leading losses at 7.8% lower, trading at $92.25. Smaller-cap stocks like Neuren Pharmaceuticals and PolyNovo are also down around 7%. However, ResMed is a rare bright spot, climbing 4% to $33.07 after delivering better-than-expected earnings on Friday. Warren Buffett’s $116 billion stock sale in Q2 further contributed to market jitters.
Leaders
WGX Westgold Resources Ltd (+3.92%)
RMD Resmed Inc (+3.90%)
SNZ Summerset Group Holdings Ltd (+1.86%)
DMP Domino’s Pizza Enterprises Ltd (+1.35%)
LFG Liberty Financial Group (+0.82%)
Laggards
CU6 Clarity Pharmaceuticals Ltd (-12.40%)
WA1 WA1 Resources Ltd (-11.90%)
SQ2 Block Inc (-10.49%)
DYL Deep Yellow Ltd (-10.24%)
JDO Judo Capital Holdings Ltd (-9.71%)
