According to Odaily, Japan's stock market experienced a significant decline for the third consecutive day on Monday. This downturn is attributed to traders' expectations of further interest rate hikes in Japan, coupled with concerns over a potential economic slowdown in the United States and the appreciation of the yen. The Nikkei 225 index fell by more than 7% at one point, triggering a circuit breaker on the Tokyo Stock Exchange Index. Both of these major Japanese indices have now entered bear market territory.
Currently, traders' expectations regarding the Federal Reserve's ability to achieve a soft landing for the U.S. economy are rapidly shifting. Data released on Friday revealed an unexpected rise in the U.S. unemployment rate to 4.3%, surpassing the Federal Reserve's year-end forecast and triggering recession indicators. Bruce, a senior U.S. economist at UBS Wealth Management, commented, 'Given the higher-than-expected unemployment rate and core personal consumption expenditures inflation currently below the Federal Reserve's year-end forecast, we believe the Federal Reserve is inclined to take more aggressive action from a risk balance perspective.'