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
16.55
(+0.78)
ZAR/GBP
20.92
(+0.37)
ZAR/EUR
18.93
(+0.67)
ZAR/AUD
11.62
(+0.40)
ZAR/JPY
0.16
(+0.47)
Gold
1807.86
(-0.06)
Silver
19.25
(-0.03)
Platinum
830.00
(+0.18)
Brent Crude
43.06
(+0.42)
Palladium
1963.00
(+0.31)
All Share
56374.05
(+1.52)
Top 40
52048.69
(+1.59)
Financial 15
10697.88
(+1.61)
Industrial 25
76413.30
(+1.19)
Resource 10
54358.32
(+2.14)
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