Japanese Stocks Plunge Most Since 2020 as BOJ Shift Rocks Market

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Bank Of Japan,Japanese Stocks,Topix Index

(Bloomberg) -- Japanese shares tumbled the most since 2020, with the benchmark Topix index sinking more than 10% from its July peak as the fallout from...

-- Japanese shares tumbled the most since 2020, with the benchmark Topix index sinking more than 10% from its July peak as the fallout from tighter monetary policy roiled one of the world’s best-performing markets.Kamala Harris Wipes Out Trump’s Swing-State Lead in Election Dead HeatExporters took a hit from the yen’s recent rally while financials retreated on concerns that their recent gains may have been excessive. The benchmark sank as much as 5.

“Its looks like heavy forced selling,” said Andrew Jackson, head of Japan equity strategy at Ortus Advisors Pte. “I can imagine many platform-based pod like structure firms are aggressively cutting risk causing blind selling across anything that’s even mildly crowded.”The big concern for the equity market is is the yen, which reached 148.51 against the dollar on Thursday, its highest since mid March.

A rotation out of large tech shares exacerbated the slump as signs of strain in the US economy led traders to reconsider whether Jerome Powell’s Federal Reserve is wise to hold off cutting interest rates before September. Data released Thursday showed US unemployment claims hit an almost one-year high while manufacturing shrank.

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