Topix - Tokyo Stock Price Index is down by 12.77%,Nikkei stock gauges tumble almost 20% from peaks.
Topix is Tokyo Stock Price Index, commonly known as TOPIX, along with the Nikkei 225, is an important stock market index for the Tokyo Stock Exchange in Japan, which tracks the entire market of domestic companies and covers most stocks in the Prime Market and some stocks in the Standard Market.
Japan’s equity benchmarks slid almost 20% from record highs reached last month as investor confidence crumbled from the surge in the yen, tighter monetary policy and the deteriorating economic outlook in the US.
Exporters were among the heaviest drags on the Topix after the yen surged more than 1% versus the dollar on the unwinding of carry trades, while banks dropped after yields of 10-year government bonds plunged 13 basis points.
“We are basically seeing a mass deleveraging as investors sell assets to fund their losses,” said Kyle Rodda, a senior market analyst at Capital.Com. “The rapidity of the move has caught me off guard; there’s a lot of panic selling now, which is what causes these non-linear reactions in asset prices to pretty straightforward fundamental dynamics.”
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