The global sell-off extended to the start of the week as concerns grew that the Federal Reserve has fallen behind on policy to support the slowing U.S. economy, sending investors to the safety of bonds. Japanese stocks plunged as traders counted on more domestic rate hikes.

The Topix and Nikkei indices were in a bear market today. The Topix posted a three-day drop that was the worst since the Fukushima nuclear meltdown in 2011.

Both indices are down 10%. The benchmark indexes are down more than 20% from their all-time highs on July 11.

Dedicated trading houses such as Mitsubishi, Mitsui and Co, Sumitomo and Marubeni are down 10%.

Today’s decline follows Friday’s drop, when Japan’s Nikkei 225 index and Topix fell more than 5% and 6%, respectively. The broader Topix posted its worst day in eight years, while the Nikkei had its worst day since March 2020.

In Monday’s trading, the yen also strengthened to its highest level against the dollar since January, last trading at 143.40.