On the morning of Monday, August 5, the key index of the Tokyo Stock Exchange Nikkei collapsed by 12.4 percent, which is a historical record fall, exceeding the collapse on "Black Monday" in 1987. The main reason is investors' concerns about the state of the U.S. economy and heightened fears of a possible recession. Last week, the Bank of Japan raised interest rates and the yen rose sharply. That was caused by a prolonged weakening of the Japanese yen, which has pushed inflation above the central bank's 2 percent target.

Financial markets began falling on Friday, reacting to a report showing a slowdown in job growth among U.S. employers last month. Investors fear that high interest rates designed to curb inflation could push the U.S. economy into recession. Japan's government has so far refrained from commenting. 

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