Japanese stocks plunge the most in a single day ever as the worldwide market meltdown becomes worse

Monday saw the worst day loss in Japanese stocks ever as concerns over a potential downturn in the US economy rocked international markets.

The Nikkei 225 index, which measures the performance of top Tokyo stocks, saw its largest-ever decline of 4,451 points. With the index closing more than 12% down, it had now lost 25% since early July and was in a bear market.

There is a growing anticipation that the US economy will experience a severe recession, which would force the Federal Reserve to lower interest rates. The Bank of Japan (BOJ) is raising interest rates in an effort to control inflation, which is strengthening the value of the yen relative to the US dollar and decreasing the appeal of Japanese export-oriented equities.

Other markets in Asia and Europe experienced increased volatility, and overnight, US stock futures saw a significant decline. Futures on the Nasdaq fell 4%. Futures for the Dow and S&P 500 were down 1.5% and 2.3%, respectively.