Global markets slump as the Nikkei suffers its worst day since 1987
What happened. On 5 August 2024 Japan's Nikkei 225 fell about 12%, its largest one-day drop since 1987, after a Bank of Japan rate rise and weak US jobs data triggered an unwinding of yen carry trades; the VIX volatility index spiked.
Why it matters for investors. The sell-off recovered most of its losses within days, a reminder that leverage and positioning can magnify market moves independent of fundamentals.
Event date: 5 Aug 2024. Source: Japan Exchange Group; Cboe Global Markets data.
Important: This article is general information and not personal investment advice. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Please consider your own goals and risk profile, and consult a qualified adviser, before you invest.
Market commentary: This is general market commentary and not a recommendation to buy, sell or hold any security. Investments in the securities market are subject to market risks; read all related documents carefully before investing.