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Wall Street woke up to grim news on Thursday morning (today) – overnight the Japanese stock market, as measured by the Nikkei index, lost a stunning 7.3%.
The shock waves were felt in stock markets throughout Asia and Europe, and caused the Dow Jones Industrial Average to shed 100 points in early trading.
Analysts blamed a combination of poor Chinese manufacturing data and mixed messages from the U.S Federal Reserve Wednesday about when it might slow its monetary easing, which caused Japanese 10-year bonds to briefly rise above 1% for the first time in a year.
But those factors "just added fuel to the fire," said Money Morning Chief Investment Strategist Keith Fitz-Gerald, explaining that there's far more lurking behind this plunge in the Japanese stock market.