Traders bet on Japan's central bank continuing to raise interest rates, Japanese stocks continue to plummet on Monday

News on August 5th, Monday, due to traders' anticipation of further interest rate hikes in Japan and concerns about a slowdown in the US economy and appreciation of the yen depressing investor sentiment, the Japanese stock market plunged for the third consecutive day. The Nikkei 225 index fell more than 7% at one point, triggering a circuit breaker mechanism in the TOPIX index. Both major benchmark indices in Japan have entered bear markets. Currently, traders' expectations that the Federal Reserve will be able to engineer a soft landing for the U.S. economy are rapidly shifting. Data released on Friday showed that U.S unemployment unexpectedly rose to 4.3%, higher than Fed's year-end forecast, triggering recession indicators from Sam's Club. A senior American economist from UBS Wealth Management Department Bros said: "Given that unemployment is higher than expected and core personal consumption expenditure inflation is currently below Fed's year-end forecast, we believe that balancing risks suggests Fed may take more aggressive action."