Over the past week, markets tumbled as fears ricocheted around the world about the health of the U.S. economy, tech sector and more. No market bore the brunt as much as Japan.

       A key Japanese stock index, starting last Thursday, experienced its most severe two- and three-day trading drops since the 1950s — declines that analysts said could not be fully explained by the same factors affecting other countries.

       Japan had one unique element exacerbating its problems. Its weakened currency, which had been inflating corporate profits and valuations, was beginning to appreciate at an alarming rate.

       The turmoil has threatened one of the most enduring stock rallies in Japan in decades. Many reasons have been given for the strong performance of Japanese stocks starting early last year. Warren E. Buffett’s Berkshire Hathaway expressed optimism about Japan as an alternative investment to China. The Tokyo Stock Exchange ramped up pressure on companies to enhance shareholder returns.

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       However, as the yen strengthened over the past week, it erased much of the gains Japanese stocks had accrued this year. Investors have been left reassessing whether the much-hailed renaissance in Japanese equities was a result more of a weakened yen than of underlying structural changes.

       “Why was the rapid downturn so much worse in Japan than in other markets? The yen is top of hierarchy,” said Stefan Angrick, a senior economist at Moody’s Analytics in Japan. “Japan’s rally ultimately had a lot to do with the yen, and what happened over the past few days has been a good reminder of that.”

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