
Market Update, August Volatility
Monday 5 August saw a global sell off across risk assets, led by losses in Japan and the wider Asia region. The Japanese stock market saw one of the largest impacts, with the Tokyo Stock Price Index (TOPIX) closing the day down 12%, its largest single day fall since the “Black Monday” crash of 1987. This contagion spread to other Asian markets, as well as into Europe and the US, with the S&P 500 Index falling over 2%, and the VIX index (measuring the implied volatility on S&P500 options) rising to its highest value since the covid-crash of 2020.