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Nikkei drops to 1-year low as investors fret about job market, IT stocks sell off again

Tokyo stocks fell sharply on Thursday, with the Nikkei average plunging to a 1-year low as investors grew increasingly uneasy about the job market and the performance of IT companies. The Nikkei finished the day at 27,244.89, down 1,112.48 points from the previous day, marking the lowest level since June 18, 2020.

Investors are increasingly concerned about the impact of the COVID-19 pandemic on the job market, with reports of layoffs and hiring freezes at major companies. This has led to a decrease in demand for riskier assets such as stocks, which are often seen as more sensitive to economic conditions.

IT stocks were particularly hard hit, with many major companies in the sector seeing their shares fall sharply. This is likely due to concerns about the impact of the pandemic on the global supply chain and the potential for a slowdown in technology spending.

In addition to the impact of the pandemic, investors are also paying close attention to the ongoing geopolitical tensions between the US and China, as well as the ongoing central bank meetings in the US and Europe. These factors are all contributing to a cautious mood among investors and a decrease in risk appetite.

Overall, the Nikkei's drop to a 1-year low is a sign of the challenges facing the global economy and the ongoing uncertainty in financial markets. It remains to be seen how long this downturn will last, but it is clear that investors are taking a cautious approach to riskier assets for the time being.