Japan's benchmark stock index lost over 2,600 points on Monday as investors unloaded shares across the board. This significant decline marks the third-largest fall on record.
Massive Selloffs
The decline began immediately after the opening bell, with the Nikkei 225 Average dropping over 2,900 points shortly after 9:30 a.m. This dramatic sell-off indicates widespread panic among investors.
Temporary Recovery
In the morning session, some investors attempted to buy back export-related shares after the Japanese yen strengthened momentarily against the dollar, which led to a temporary recovery in share prices.
Continued Decline
Despite the brief buyback, the positive momentum did not last, as the Nikkei index fell again in the afternoon trading session, eventually closing at 31,136, marking a net loss of 2,644 points.
Historical Context
This decline represents the third-largest drop in the Nikkei's history, only surpassed by a record plunge in August of the previous year and the infamous Black Monday crash of 1987.
Market Impact
The significant drop was not isolated to Japan; other major Asian markets, including Hong Kong and Taiwan, also saw declines. Analysts noted particularly strong selling of chip-related stocks on the Tokyo exchange during the afternoon.
