U.S. Economy Contracts Sharply in Q1 2025: Key Factors and Implications
The U.S. economy contracted at an annualized rate of 0.5 percent in the first quarter of 2025, according to the third estimate (BEA).
Japan's Nikkei 225 experienced its worst decline since the 1987 Black Monday crash, plunging 12.4% and erasing all gains for the year. The broader Topix index also fell sharply, down 12.23%.
On Monday, Japan's stock market officially entered bear territory as Asia-Pacific markets continued last week's sell-off. Both the Nikkei 225 and Topix indexes plummeted over 12%.
The benchmark indexes have dropped more than 20% from their all-time highs recorded on July 11.
The Nikkei 225 suffered a staggering 12.4% decline, closing at 31,458.42. This marked its worst day since the infamous "Black Monday" of 1987. The index lost 4,451.28 points, the largest single-day point drop in its history, erasing all its gains for the year and moving into a loss position.
The broader Topix index also experienced a significant downturn, tumbling 12.23% to close at 2,227.15.
Heavyweight trading houses such as Mitsubishi, Mitsui & Co, Sumitomo, and Marubeni saw sharp declines, with each plunging over 14%. Mitsui faced the most severe hit, losing nearly 20% of its market capitalization. Monday's decline followed a dramatic drop on Friday, where the Nikkei 225 and Topix fell more than 5% and 6%, respectively.
Additionally, the yen strengthened to its highest level against the dollar since January, trading at 142.09.
The U.S. economy contracted at an annualized rate of 0.5 percent in the first quarter of 2025, according to the third estimate (BEA).
In a sharp escalation of hostilities, the United States in the new Trump-era, has launched direct strikes on Iranian nuclear facilities, targeting critical infrastructure
The world sits on the edge of a potential oil shock. As conflict between Israel and Iran had escalated