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: