Japan’s Nikkei index dived a further 5% on Thursday to hit a five-week low, amid predictions of a bigger correction from some analysts.
The fall means the Nikkei has lost 8.3% since reaching a five-and-a-half-year high just a week ago.
Trading in Tokyo has been volatile amid concerns over global growth and the future of US stimulus measures.
Japanese government officials have played down the significance of the falls, suggesting they are “temporary”.
“Share prices appear to have been undergoing temporary adjustment over the past week,” Japan’s chief cabinet secretary, Yoshihide Suga, told reporters.
“A rise in share prices over the past month has been extremely rapid… In that regard, it would be unnatural if adjustment did not occur.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.