Tokyo’s shares record historic declines on Monday

(MENAFN) On Monday, the Nikkei Stock Exchange experienced a historic decline, with the index plunging by over 4,600 points, which represents a drop of more than 12 percent. This significant fall in the stock market was driven by growing concerns about a potential recession in the United States, according to a Tokyo-based news agency. The sharp drop in the Nikkei reflected broader market anxieties and had a notable impact on trading activity.

The severe downturn triggered a stock circuit breaker for both the Nikkei and Topix futures markets, which temporarily halted trading to prevent further losses. This measure was implemented to manage the extreme volatility and to provide a brief pause in trading as the markets adjusted to the sudden and dramatic shifts in stock values.

In the currency markets, the Japanese yen surged to 142 against the US dollar, which had fallen to a fresh seven-month low. This sharp appreciation of the yen highlighted the increasing demand for safe-haven currencies amid the global economic uncertainties and the significant declines in stock markets.

Looking ahead, there is speculation that the Bank of Japan may implement another interest rate hike later this year. Such a move would be aimed at addressing ongoing economic challenges and potentially stabilizing financial markets amidst the global economic turbulence and domestic market fluctuations.

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