As fears of an American recession unfold, stockmarkets all over the world have been jittery. The strikes have been the wildest of all in Japan. On August fifth the Topix plunged by 12% in its worst efficiency since 1987; the yen had climbed from its weakest level in 37 years. The following day, shares swung again, rising by 9%, as traders snapped up shares that had plunged in worth. The sharp strikes carry implications not only for Japanese traders and corporations. The nation’s monetary heft signifies that they may turn out to be a supply of additional volatility in nervous world markets.
