The Tokyo stock market experienced a significant decline on August 2nd, with the Nikkei 225 index plummeting to a six-month low. The index closed at 35,909.70, down 2,216.63 points, or 5.81 percent, from the previous day's close. This marked the first time in about half a year that the index had fallen below the 36,000 level.
The steep decline was the second largest in history in terms of points, following the "Black Monday" stock market crash of October 1987. The decline was attributed to several factors, including concerns about an economic slowdown and selling to lock in profits following recent gains.
The Dow Jones Industrial Average in New York also experienced a decline on August 1st, falling by more than 700 points. This was the first decline in three days for the Dow.
Following the trend in the US market, the Tokyo market opened sharply lower on August 2nd. The yen also continued to strengthen against the dollar, reaching 148 yen per dollar in the morning. The rapid appreciation of the yen has been pressuring export-related stocks.