The Nikkei 225 closed at ¥31,458 in Tokyo trading on the 5th, down ¥4,451. The decline based on the closing price was the largest on record, while a sharp morning sell-off and the triggering of circuit breakers were reported.
The Nikkei 225 closed at ¥31,458 in Tokyo trading on the 5th, down ¥4,451 from the previous day. The decline based on the closing price was the largest on record, surpassing the scale of the market drop during Black Monday in 1987.
Trading fell sharply from immediately after the open. At around 1:50 p.m., the decline exceeded ¥3,000, and the Nikkei 225 temporarily fell below the ¥33,300 level. The market was also reported to have triggered circuit breakers that halted trading in Nikkei 225 futures and TOPIX futures.
The sharp decline was attributed in part to growing concerns over a US recession. The Japanese yen appreciated to the ¥141 range at one point, while lower long-term interest rates also had an impact. Selling spread across the market, particularly among bank stocks, with Sumitomo Mitsui Financial Group and Dai-ichi Life Holdings among those posting notable declines. Market movements are expected to depend on indicators such as the US ISM Services PMI.
Market participants said the Nikkei 225 could continue to move sharply in either direction depending on US economic indicators, expressing the view that market turmoil would continue.