Japan Stock Market Dips Amid US Recession Concerns

Japan’s benchmark stock index plunged 12.4 per cent on Monday, compounding a global market rout set off by investor concerns that the the U.S. economy could be headed for recession.

A report Friday showing that hiring by U.S. employers slowed last month by much more than expected has convulsed financial markets.

The shakeup began just a couple of days after U.S. stock indexes had jumped to their best day in months after Federal Reserve Chair Jerome Powell set the stage for possible rate cuts to begin in September.

But after Friday’s jobs report, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the world’s largest economy.

A rate cut would make it less expensive for U.S. households and companies to borrow money, but it could take time for the effects to boost the economy.