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 Aandelen stijgen na de sell-off infographic
Graphic shows Asian stock rallies after Monday’s sell-off.
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MARKTEN

Aandelen stijgen na de sell-off

By Duncan Mil

August 6, 2024 - Japan’s Nikkei 225 share index soars nearly 11% after plunging to a record 12.4% on Monday -- its biggest fall since “Black Monday” in October 1987.

The numbers flashing on trading screens on Monday shocked even market veterans. However, Asian stocks have bounced back today.

In Tokyo, the tech-heavy Nikkei recovered by 10.9%; in Seoul, the Kospi rose by 7.9%.

The return of relative calm comes after global markets lost $6.4 trillion in three weeks.

“Calm finally appears to be returning,” Bas van Geffen of Rabobank said in a report. He said that the Nikkei’s 10% gain didn’t make up for Monday’s loss, “but at least it takes some of the ‘panic’ out of the selling.”

Nicholas Smith, Japan strategist at London-based investment company CLSA, pointed to the exaggerated impact of algorithmic trading programmes, which may have specifically responded to the recent sharp upward move in the yen. “It does look like they are correlated with the yen,” Smith told the Financial Times. “After all the excitement about the prospects of AI, it now looks like AI may have got us into this mess.”

Sources
PUBLISHED: 06/08/2024; STORY: Graphic News
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