Japanese stocks see worst plunge since 1987

The Nikkei 225 index in Japan faced a 12.4% decline on Monday, experiencing its largest fall since the 1987 crash. Last week’s global market downturn extended to Asia this week, with significant drops in South Korea, Taipei, Singapore, and Australia as well. The Japanese central bank’s recent interest rate hike, the second in 17 years, has strengthened the yen, adversely impacting Japan’s export companies. Global market concerns are intensified by the US economic outlook, with disappointing job growth adding to the uncertainty. In Denmark, the C25 index saw its biggest fall since September 2022 on Friday. The risk of the US facing a recession has notably increased, with some experts estimating it to be around 50%. Market signals imply the possibility of a scaled-down drop in the US and German markets despite Asia’s downturn.