Nikkei 225 Suffers Historic Plunge Amid US Economy Concerns

Japan's Nikkei 225 share index experienced a record drop of over 12%, driven by concerns about the U.S. economy's health. The index fell 18.2% over two days, with significant declines in major companies like Toyota and Honda. The plunge follows the Bank of Japan’s recent interest rate hike.

Japan's Nikkei 225 share index experienced a dramatic decline of more than 12 percent on Monday as investor anxiety over the U.S. economy's health led to widespread selling across various sectors. The index plummeted by 4,451.28 points to settle at 31,458.42.

The recent fall follows a 5.8 percent drop on Friday, marking the worst two-day decline in its history with an 18.2 percent plunge. The downturn mirrors previous significant drops, including the 14.9 percent fall on Black Monday in October 1987 and the 11.4 percent decrease during the 2008 financial crisis.

The sell-off was exacerbated when the Bank of Japan raised its benchmark interest rate last Wednesday. Major companies such as Toyota Motor Corp. and Honda Motor Co. saw significant share price drops of 11 percent and 13.4 percent, respectively, while Tokyo Electron and Mitsubishi UFJ Financial Group experienced even steeper declines.