Quotes on the largest Asian stock exchange in Tokyo (TSE) collapsed at the end of the last trade this week amid a sharp drop in US indexes, trading data showed.
The key Nikkei index, which tracks share price fluctuations of 225 leading Japanese companies, fell 5.8% to 35,909.7 points, falling below the psychologically important level of 36,000 points. This was the TSE's second largest single drop in the history of the stock exchange - the Nikkei fell more heavily only in October 1987.
As noted by local analysts, the main factor behind the decline in Tokyo was news from the US, where key indexes also fell amid weak industrial statistics for July. Investors fear that this is evidence of a slowdown in the US economy.
Against this background, the yen exchange rate strengthened its position against the US dollar, adding 0.61% to reach a level of 148.93-148.95 yen per 1 USD. Chief Cabinet Secretary Yoshimasa Hayashi at a regular press conference on August 2, as usual, refrained from directly commenting on the situation in Japan's stock market, but stressed that the government is closely monitoring the situation.