Monday 5 August 2024 saw a sell-off that rocked stock markets around the world. It started in the Asia-Pacific regionwhen Japan bowed to a bear market as investors continued their liquidation spree.

Both the Nikkei 225 and TOPIX plunged by more than 12%. Benchmark indexes, which attained a record high on 11 July 2024, lost more than 20%. CNBC indicated that the Nikkei’s 12.4% decline was its worst day since ‘Black Monday’ in 1987. TOPIX fell by 12.23%.

The Nikkei lost all financial traction gained since the start of this year. Trading giants such as Mitsubishi Corporation (8058.T), Mitsui & Co, Ltd. (8031.T) and Marubeni Corporation (8002.T) had their market caps depleted by more than 14%, with Mitsui losing close to 20%.

These movements rippled to markets across the board and upended what the Associated Press (AP) described as a “relatively calm year in markets”. AP attributed Japan’s index nightmare to investor worries about the sluggish US economy.

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