The weak economic and employment data of the country has triggered investors' concerns about the US economic recession. On August 5th, stock markets in many parts of the Asia Pacific region fell sharply, and some markets experienced panic selling.

Market analysts point out that the highly praised expectation of a "soft landing" for the US economy has been hit, replaced by market concerns about a "hard landing".

On that day, the Nikkei 225 stock average price index in Japan closed at 31458.42 points, down 4451.28 points from the previous trading day, setting a historical record for the decline in points, with a drop of 12.40%; The South Korean KOSPI index closed at 2441.55 points, down 234.64 points or 8.77% from the previous trading day, triggering a circuit breaker mechanism; The Straits Times Index in Singapore closed at 3243.67 points, a decrease of 137.78 points or 4.07% from the previous trading day; The Australian ASX 200 index closed at 7649.6 points, down 293.6 points or 3.7% from the previous trading day; The New Zealand NZX 50 index closed at 12264.49 points, down 188.55 points or 1.51% from the previous trading day.

The US economy and stock market are important components of the global economy and market, and their spillover effects of turbulence cannot be underestimated. The Australian newspaper pointed out that the poor performance of the US economy and employment data, as well as disappointing performance of large technology companies, led to a decline in the US stock market on August 2, and the decline in stock markets in many parts of the Asia Pacific region on August 5 is a continuation of the US stock market decline.

Overall, the July US manufacturing index released by the American Institute of Supply Management on August 1st fell short of expectations, causing concerns among some investors; The US Department of Labor announced on August 2 that the number of new jobs added in the non farm sector in July was significantly lower than market expectations, and the monthly unemployment rate was higher than market expectations, exacerbating investors' concerns about the Federal Reserve's failure to take swift action to avoid an economic recession.

Australian stock industry insider Matt Williams believes that there are significant doubts in the market about whether the Federal Reserve can achieve a "soft landing" between avoiding economic recession and curbing inflation.

According to Xu Xiangying, a researcher at Future Asset Securities in South Korea, the South Korean stock market has experienced a significant decline due to various unfavorable factors. Yonhap News Agency commented that in the midst of panic, it is difficult to predict the bottom of the South Korean stock market. In response to the financial market volatility, South Korean Deputy Prime Minister and Minister of Planning and Finance, Choi Sang mu, has requested all departments to remain highly vigilant, monitor around the clock, and take measures in accordance with emergency plans if necessary.

Henry Jennings, a market analyst at Australian investment services, believes that against the backdrop of the appreciation of the Japanese yen, global investors have begun to liquidate their positions in arbitrage trades that used to take advantage of Japan's low interest environment to borrow and invest in high interest environment markets such as the United States. This is the main reason for the weakness of Asian stock markets and has affected the Australian stock market.

He stated that market sentiment remains very tense, and it is currently unclear when global financial markets will stabilize.