Japans Nikkei Index Sees Major Drop Amid Economic Concerns

The Nikkei market average in Japan saw its biggest one-day loss since 2020 on Friday, falling 5.8%. The US economy`s poor outlook contributed to the downturn. The Japanese government raised rates on Wednesday, breaking from its historically dovish stance. The drop comes just two days after the Bank of Japan raised interest rates to boost the yen`s value amid higher inflation. Japan`s semiconductor companies drove the index`s decline, with Tokyo Electron dropping 12% after Intel missed earnings estimates and announced cost-cutting measures. The US economy has been cooling, with US stock indexes tanking due to rising unemployment and slowing manufacturing and construction. Bank of America analysts expect the BoJ`s next hike in January.