Japanese stock market

Japanese stocks have faced unprecedented declines, most notably with the Nikkei 225 index suffering its largest single-day drop in history, losing 4,451 points or 12% in one day, marking a 25% decline since early July. This turmoil is attributed to fears of a U.S. economic slowdown, leading to expectations for the Federal Reserve to cut interest rates, while the Bank of Japan is poised to increase rates to combat inflation, which has strengthened the yen and negatively impacted export-dependent stocks. The sell-off has been exacerbated by the volatility in tech stocks and mixed earnings reports, alongside concerns of a self-perpetuating bear market. Other factors include a significant drop in the value of Japanese chip stocks and an overall decline in investor sentiment, spurred by recent dismal U.S. jobs data. The market's rapid response has led to circuit breakers being triggered multiple times in Japan and elsewhere, reflecting widespread panic. As the situation develops, Japan's Finance Minister has expressed grave concern regarding market stability.