Japan’s Nikkei 225 share average suffered a severe intraday collapse on Friday, briefly diving more than 4,100 points during the afternoon session.
The sudden volatility represents a stark contrast to the benchmark’s recent trajectory, which had seen the index extend an eight-session winning streak to fresh record highs earlier in the week.
The steep drop underscores the fragility of the recent rally, as traders appear to be unwinding positions following the prolonged advance.
While the index had drifted lower on Tuesday to end the winning streak, the magnitude of Friday’s afternoon selloff suggests a more aggressive shift in sentiment.
Market participants are likely reacting to a combination of profit-taking and broader risk-off flows, with the sharp move highlighting the sensitivity of Japanese equities to global market cues.
This volatility follows a period of choppy trading, where the index had already shown signs of exhaustion after reaching new peaks.