Global Markets Tumble as Japanese Shares Plunge and US Rating Cut Takes Toll

Japanese shares experienced their largest one-day drop this year as caution spread across Asia following a surprise cut in the US credit rating by Fitch. The Nikkei average closed down 2.30%, while the broader Topix slipped 1.54%. Chip-related stocks and the brokerage sector were particularly affected, with Tokyo Electron and Advantest experiencing declines, and Nomura Holdings seeing its biggest one-day drop since March 2021. However, Toyota Motor managed to rise 2% after reporting a significant increase in operating profit for the first quarter.