Japan's Nikkei 225 index plummeted 12.4%, closing at 31,458.42 points on August 5, marking its largest single-day drop in history, surpassing the infamous 'Black Monday' crash of 1987. The decline was driven by investor concerns over a potential recession in the United States, exacerbated by disappointing US employment data and a strengthening yen that negatively impacts exporters. In the wake of this downturn, the broader TOPIX index also fell significantly, leading to a market value loss of approximately $792 billion since July. Other Asian markets, including Taiwan's TAIEX, mirrored this trend with substantial declines, reflecting global market jitters. Japanese officials, including Finance Minister Shunichi Suzuki, expressed grave concern and indicated close monitoring of the situation, while analysts highlighted that market volatility could persist. The situation underscores the interconnectedness of global economies, with fears of a US recession rippling through Asian markets.