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).
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.
