(AFP/APP) – Tokyo stocks extended early losses and plunged more than five percent Tuesday with investor sentiment hit by a sell-off on Wall Street and the yen's surge against the dollar.
The benchmark Nikkei 225 index lost 5.17 percent or 1,173.45 points to 21,508.63 points in mid-morning trade while the broader Topix index was down 4.87 percent or 88.75 points at 1,734.99.
“Investors fled to sell after the large drops on Friday and Monday” on Wall Street, said Toshihiko Matsuno, analyst at SMBC Nikko Securities.
“The gains since the turn of the year were rapid and the sudden downturn came as a shock” to market players, he told AFP.
Hong Kong stocks battered in morning session
Hong Kong stocks were hammered almost five percent in the morning session Tuesday, as global markets are routed after months of stellar gains and on worries about rising US interest rates.
The Hang Seng Index fell 4.94 percent, or 1,593.91 points, to 30,651.31 by the break.