The drop of Japan Nikkei
The Nikkei 225 is the foremost index of Japan’s stock market that represents 225 largest including highly liquid stocks listed on the Tokyo Stock Exchange (TSE).
On August 5, 2024, the Nikkei 225 plummeted by a record since the year 1987 as it sank by 12.4% to close at a level of points. This decline also resulted in wiping out all returns for this year after the index had already been above forty thousand points earlier during the same year.
The recent drop was attributed mainly to concerns globally regarding a recession appearing in America due to a US Labor Department report showing hiring decelerated in July. This news made many fear negative GDP growth thus triggering widespread selling across markets including the crypto market. Additionally, there has also been less demand for Japanese equities from overseas investors because its currency strengthened against the Dollar leading to a stronger yen.
