Stocks in Japan drop by 7%, nearing bear market levels, while other Asian shares continue to decline

The Asia-Pacific markets experienced a continued sell-off, with Japan’s Nikkei 225 and Topix leading the losses by dropping as much as 7%. Both indices are nearing bear market territory, having fallen almost 20% from their all-time highs in July. China’s service sector saw an expansion in July, with the purchasing managers’ index climbing to 52.1. Taiwan’s Taiex index was down almost 8%, while Australia’s S&P/ASX 200 fell 2.84%. The Reserve Bank of Australia is expected to hold rates steady at 0.35% during its two-day meeting. South Korea’s Kospi and Kosdaq were down over 4%, while Hong Kong’s Hang Seng index saw a smaller loss. In the U.S., stocks fell sharply on Friday following a weaker-than-anticipated jobs report for July, with the Nasdaq entering correction territory. The S&P 500 dropped 1.84%, the Nasdaq lost 2.43%, and the Dow Jones Industrial Average fell 1.51%. Investor focus remains on key trade data from China and Taiwan, as well as central bank decisions from Australia and India. Markets will be monitoring monetary policy statements for clarity on potential rate hikes.

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