HONG KONG — The battered Japanese stock market lurched into bear market territory Thursday morning, after a tumble of 5.3 percent took the combined decline in the Nikkei 225 index since May 23 to more than 20 percent.
By the hourlong lunchtime break in Tokyo, the Nikkei 225 stood at 12,584.40, about 21 percent below a high of nearly 16,000 reached in intraday trading three weeks earlier.
The drop on Thursday was one of many sharp declines seen in recent weeks, since a feverish six-month rally in Japanese stocks — triggered by optimism over the government’s aggressive efforts to reinvigorate the listless economy — came to an abrupt end.
The Nikkei 225 soared more than 80 percent between mid-November and mid-May, but staged a sudden about-face with a 7.3 percent plunge on May 23.
Sentiment has been fragile and trading volatile ever since, as investors have taken stock of the challenges that face “Abenomics,” the economic policies of Prime Minister Shinzo Abe, and weighed the pros and cons of taking profits after the rally.
Signs that the U.S. Federal Reserve may soon begin to scale back its stimulus efforts in the United States also have buffeted global sentiment, as has a steady stream of signs that the Chinese economy is struggling to regain momentum.
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