Japan stocks plunge, other Asia markets fall after US losses

Japan stocks plunge, other Asia markets fall after US losses
CORRECTS DATE - A man walks past the day's losses, of Nikkei stock index, left, and of the Dow Jones Industrial Average, right, on an electronic stock board at a securities firm in Tokyo, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank.(Yohei Fukai/Kyodo News via AP) (Source: ê[à‰ómïΩ)

BEIJING (AP) — Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's criticism of the U.S. central bank.

The Nikkei 225 fell by an unusually wide margin of 5 percent to 19,155.14. The Shanghai Composite Index ended off 0.9 percent at 2,504.82 after being down as much as 2.3 percent at midday. Benchmarks in Thailand and Taiwan also declined.

Markets in Europe, Hong Kong, Australia and South Korea were closed for Christmas.

Wall Street indexes fell more than 2 percent on Monday after Trump said on Twitter the Federal Reserve was the U.S. economy's "only problem." Efforts by Treasury Secretary Steven Mnuchin to calm investor fears only seemed to make matters worse.

U.S. stocks are track for their worst December since 1931 during the Great Depression.

A Chinese man naps at a brokerage in Beijing, China, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (AP Photo/Ng Han Guan)
A Chinese man naps at a brokerage in Beijing, China, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (AP Photo/Ng Han Guan) (Source: Ng Han Guan)

Shanghai is down almost 25 percent this year. Tokyo, Hong Kong and other markets are on track to end 2018 down more than 10 percent.

Markets have been roiled by concerns about a slowing global economy, the U.S.-Chinese tariff battle and another interest rate increase by the Fed.

CORRECTS DATE - A man looks at the day's loss of Nikkei stock index on an electronic stock board at a securities firm in Tokyo, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (Yohei Fukai/Kyodo News via AP)
CORRECTS DATE - A man looks at the day's loss of Nikkei stock index on an electronic stock board at a securities firm in Tokyo, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (Yohei Fukai/Kyodo News via AP) (Source: Yohei Fukai)

Trump's Monday morning tweet heightened fears about the economy being destabilized by a president who wants control over the Fed. Its board members are nominated by the president but make decisions independently of the White House. The board's chairman, Jerome Powell, was nominated by Trump last year.

"The only problem our economy has is the Fed," the president said on Twitter. "They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can't score because he has no touch — he can't putt!"

A Chinese man eats his meal at a brokerage in Beijing, China, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (AP Photo/Ng Han Guan)
A Chinese man eats his meal at a brokerage in Beijing, China, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (AP Photo/Ng Han Guan) (Source: Ng Han Guan)

The Standard & Poor's 500 index slid 2.7 percent. The benchmark index is down 19.8 percent from its peak on Sept. 20, close to the 20 percent drop that would officially mean the end of the longest bull market for stocks in modern history — a run of nearly 10 years.

The Dow Jones Industrial Average sank 2.9 percent while the Nasdaq skidded 2.2 percent.

CORRECTS DATE - Monitors show Nikkei stock index, right, and the exchange rate between Japan's yen and U.S. dollar, left, at a foreign exchange trader's company in Tokyo, Tuesday, Dec. 25, 2018. Japan’s main stock index has plunged following heavy Wall Street losses triggered by President Donald Trump’s Christmas Eve criticism of the Federal Reserve. (Suo Takekuma/Kyodo News via AP)
CORRECTS DATE - Monitors show Nikkei stock index, right, and the exchange rate between Japan's yen and U.S. dollar, left, at a foreign exchange trader's company in Tokyo, Tuesday, Dec. 25, 2018. Japan’s main stock index has plunged following heavy Wall Street losses triggered by President Donald Trump’s Christmas Eve criticism of the Federal Reserve. (Suo Takekuma/Kyodo News via AP) (Source: ïêåGé¸ñh)

On Sunday, Mnuchin made a round of calls to the heads of the six largest U.S. banks, but the move only raised new concerns about the economy.

Most economists expect U.S. economic growth to slow in 2019, not slide into a full-blown recession. But the president has voiced his anger over the Fed's decision to raise its key short-term rate four times in 2018. That is intended to prevent the economy from overheating.

Traders work on the floor of the New York Stock Exchange in New York, Monday, Dec. 24, 2018. (AP Photo/Seth Wenig)
Traders work on the floor of the New York Stock Exchange in New York, Monday, Dec. 24, 2018. (AP Photo/Seth Wenig) (Source: Seth Wenig)

Technology stocks, health care companies and banks took some of the heaviest losses in Monday's sell-off. Wells Fargo slid 3.4 percent, Microsoft 4.2 percent and Johnson & Johnson 4.1 percent.

U.S. markets reopen Wednesday.

A picture of President Donald Trump is displayed on a computer on the floor of the New York Stock Exchange in New York, Monday, Dec. 24, 2018. (AP Photo/Seth Wenig)
A picture of President Donald Trump is displayed on a computer on the floor of the New York Stock Exchange in New York, Monday, Dec. 24, 2018. (AP Photo/Seth Wenig) (Source: Seth Wenig)

In energy markets, Brent crude, used to price international oils, lost 9 cents to $50.68 per barrel in London. The contract plummeted $3.33 on Monday to close at $50.77.

In currency trading, the dollar declined to 110.28 yen from Monday's 110.45 yen. The euro was little-changed at $1.1407.

A Chinese woman browses on her mobile phone at a brokerage in Beijing, China, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (AP Photo/Ng Han Guan)
A Chinese woman browses on her mobile phone at a brokerage in Beijing, China, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (AP Photo/Ng Han Guan) (Source: Ng Han Guan)
A Chinese man naps at a brokerage in Beijing, China, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (AP Photo/Ng Han Guan)
A Chinese man naps at a brokerage in Beijing, China, Tuesday, Dec. 25, 2018. Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by President Donald Trump's attack on the U.S. central bank. (AP Photo/Ng Han Guan) (Source: Ng Han Guan)