Tokyo stocks down more than 2.8% after Wall Street rout

Global stocks rebound. (Photo: iStock)
Global stocks rebound. (Photo: iStock)

Tokyo stocks dropped more than 2.8% in early trade on Friday following a plunge in US shares on revived worries about the coronavirus and concerns about overheating equity prices.

The benchmark Nikkei dropped 2.84% or 637.19 points to 21 835.72 in early trade, while the broader Topix index was down 2.85% or 45.35 points at 1 543.57.

"Investors in the Japanese market were discouraged by a rout in US shares, with trade starting with sharp drops," senior market analyst Toshiyuki Kanayama of Monex said in a commentary.

In Australia, the ASX also sank at the open, falling 2.87% or 170.90 points to 5 789.70.

Wall Street stocks plunged Thursday with the Dow Jones Industrial Average plummeting 6.9% or more than 1 850 points to 25 128.17.

After weeks of focusing on the positive side of the reopening of economies, investors shifted attention to rising coronavirus cases in some states that have reopened, including the US states of Texas and Arizona.

The dollar fetched 106.78 yen in early Asian trade, against 106.86 yen in New York.

In Tokyo, major shares were lower, with Toyota trading down 1.20% at 6 822 yen, Sony down 2.45% at 7 311 yen and Canon off 2.53% at 2 212 yen.

ZAR/USD
16.97
(+0.36)
ZAR/GBP
21.20
(+0.22)
ZAR/EUR
19.19
(-0.20)
ZAR/AUD
11.84
(-0.04)
ZAR/JPY
0.16
(+0.14)
Gold
1784.58
(+0.54)
Silver
18.27
(+1.50)
Platinum
821.00
(+1.54)
Brent Crude
42.85
(0.00)
Palladium
1931.00
(+1.04)
All Share
54846.28
(+0.60)
Top 40
50503.91
(+0.65)
Financial 15
10134.53
(-0.15)
Industrial 25
76434.98
(-0.16)
Resource 10
51142.00
(+2.00)
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