Japanese Stocks Plunge 8.1%, Worst Two-Day Drop Since 1987

Aug 5, 2024, 12:20 AM

Japanese stocks have experienced a significant decline, marking the largest drop since the Black Monday crash of 1987. The Nikkei 225 index fell 8.1% on Monday, following a 6% drop on Friday, resulting in the worst two-day stock market selloff in Japan's history. The broader Topix index also suffered, falling 9% at one point. The Nikkei 225 closed at 35,909.70 on Friday and fell below 33,000 on Monday. The declines have pushed the Nikkei 225 into bear market territory, down 21% from its July peak. The Topix index has also fallen 20% from its July peak. The selloff has been attributed to concerns over the U.S. economic outlook and the Bank of Japan's recent interest rate hike. The market turmoil has triggered circuit breakers and led to significant losses across all sectors, with the Topix Banking Index falling more than 10% and MUFG shares dropping as much as 21%. The volatility has wiped out six months of gains in just a week. This marks the largest decline in more than 8 years, with the Nikkei falling below 36,000 and the Topix down 6.7%.