The Japanese stock index falls by 28% from its peaks, entering a bear market 📌

Panic in Japanese stocks reaches record levels, surpassing the sell-off from March 2020 during the Covid-19 pandemic. The index is down 11.50% just today and has fallen over 28% from its peaks, confirming a transition into a bear market. Nikkei 225 futures have been suspended due to the activation of an automatic circuit breaker.

The declines in the Japanese market are accelerated by the rise in the value of the Japanese yen, which is the strongest currency today, gaining even between 3.0-5.0% against other G10 currencies. USDJPY is down 3.20% to 141.8000.

  • Despite the BOJ's rate hike, the yield on 10-year Japanese government bonds fell by over 25 basis points to a multi-month low.

  • The yen rose to multi-month highs against the dollar, affecting exporters like Honda Motor and real estate companies like Mitsui Fudosan, reversing earlier stock market gains.

  • Foreign investors sold a net 1.56 trillion yen in Japanese stocks and futures, contributing to the market downturn.

The Japanese market is heading towards the worst trading day in the entire history of the stock exchange. The declines are also accelerated by investor panic, with trading in Nikkei 225 futures already suspended twice due to the automatic halt. The volatility index has risen to a new record of 132%. The Japanese Topix is experiencing its worst day since 1987.

Source: xStation 5