Short answer
The Nikkei falls when the yen strengthens (hurting exporters), when the Bank of Japan raises rates, or when global tech sells off.
Why is the Nikkei falling?
What happened
The Nikkei 225 dropped sharply, sometimes in one of its biggest falls in years.
Why it happened
Japanese exporters lose profits when the yen strengthens. Any BoJ rate hike also unwinds the carry trade globally.
Why investors care
Sharp Nikkei drops can trigger global volatility (as in August 2024).
How it affects ordinary people
Global ETFs feel it. Japanese consumers benefit from a stronger yen at import shops.
FAQ
What is the carry trade?
Borrowing in a low-rate currency (yen) to invest in higher-yielding assets abroad — very sensitive to yen moves.
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Educational content — not financial advice.