Japan's Breathtaking 7% Plunge Is The Worst Since The Fukushima Disaster

Japan, which has seen an extraordinary rally this year, is saw an epic pullback today.

The Nikkei plunged 7.3%.

This is the biggest sell-off since March 2011, when Japan was hit by a tsunami.

This followed warnings from the Federal Reserve that it could begin to taper its monetary stimulus programs within a few months should the economic data warrant it.

A major catalyst for the global sell-off also seems to be the unexpected contraction signal seen in China’s manufacturing industry.

Here’s what the Nikkei looked like on Thursday via Bloomberg:

BloombergFor some context, here’s the 1-year chart:

Bloomberg

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.