Japan – what’s changed?

In early August, the biggest one day drop in the Nikkei 225 since 1987 saw recent gains wiped out, with the index dropping over 12 percent – though a good deal of this has now been recovered. This dip came several months after the index broke the 40,000-point level for the first time, driven in part by the artificial intelligence boom driving up Japanese tech stocks. However, several indicators at the start of the summer led global markets – and Japanese equities in particular – to react strongly, leading to this historic dip.