Japanese Stocks Plunge in Historic Decline, Nikkei Down 21%, Topix Falls 6.6%

Aug 5, 2024, 12:47 AM

Japanese stocks have experienced a historic decline, marking the largest two-day drop since the Fukushima Nuclear Disaster in 2011. The Nikkei 225 index has plunged 21% from its July peak, entering bear market territory. The Topix index has also seen significant losses, falling 6.6% and triggering circuit breakers, which halted trading temporarily. This marks the Topix's worst day in eight years. The decline is attributed to a combination of factors, including a strengthening yen, disappointing U.S. jobs data, and growing recession fears. The Bank of Japan's recent policy decisions have also contributed to the market turbulence. Other Asia-Pacific markets, including the Taiex and Kospi, have followed suit, experiencing sharp declines. The overall market cap of Japanese stocks has dropped by nearly $600 billion over the past two sessions.