Investing.com– Asian stocks fell sharply on Friday, tracking an overnight rout on Wall Street on concerns over slowing economic growth, with a rout in Japanese markets deepening after the Bank of Japan struck a hawkish chord this week.
Weak U.S. purchasing managers index and labor market data ramped up concerns over a slowdown in the world’s biggest economy, and that a September interest rate cut by the Federal Reserve could be potentially too late for the economy to achieve a soft landing.
Weak earnings from majors such as Intel Corporation (NASDAQ:INTC) and Amazon.com Inc (NASDAQ:AMZN) also dented sentiment, largely offsetting a positive print from Apple Inc (NASDAQ:AAPL). U.S. stock index futures fell sharply in Asian trade, with focus now turning to upcoming nonfarm payrolls data for more economic cues.
Nikkei hits 6-mth low in wake of hawkish BOJ
Japanese markets were by far the worst performers among their Asian peers, with the Nikkei 225 index down nearly 5% to its weakest level since early-February. The broader TOPIX index shed 4.2%.
Japanese stocks were already nursing sharp losses from Thursday, after the BOJ struck an unexpectedly hawkish tone during its end-July meeting.
The central bank hiked rates by 15 basis points and said it planned to raise rates further this year- presenting a clear end to the stimulative policies that boosted Japanese markets over the past year.
A spike in the yen- on safe haven demand and on a hawkish BOJ- also weighed on Japanese stocks, particularly those with exposure to exports.
