As fears of an American recession unfold, stockmarkets all over the world have suffered. However none has taken as extreme a beating as Japan’s. On August fifth the Topix plunged by 12% in its worst efficiency since 1987, in contrast with falls of 2-3% in America, Britain and Europe. The index is now nearly 1 / 4 under its peak, reached barely a month in the past. The yen, in the meantime, is snapping again: it’s up 13% from lower than a month in the past, when it was at its weakest in 37 years. These sharp strikes carry implications not only for Japanese buyers and companies. The nation’s monetary heft signifies that they may grow to be a supply of additional volatility in nervous international markets.
