Japan's Nikkei 225 share index plunged nearly 13 per cent as investors worried that the US economy may be in worse shape than had been expected dumped a wide range of shares.
The Nikkei index was down 12.9 per cent at 31,290.63 by midafternoon Monday in Tokyo.
Read more: Should you invest in stock market amid fears of US recession? ‘Much more resilient’
It dropped 5.8 per cent on Friday and it is headed for its worst two-day decline ever.
The Nikkei's biggest single-day rout was a plunge of 3,836 points, or 14.9 per cent, on the day dubbed “Black Monday” in October 1987. It suffered an 11.4 per cent drop in October 2008 during the global financial crisis and fell 10.6 per cent during the aftermath of massive earthquakes and nuclear meltdowns in northeastern Japan in March 2011.
Read more: Stock market crash: Sensex down 2,000 points, ₹10 lakh crore wiped out today
Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The benchmark is now about 4 per cent below the level it was at a year ago.
{{/usCountry}}Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The benchmark is now about 4 per cent below the level it was at a year ago.
{{/usCountry}}The wave of selling hit a broad range of companies.
Read more: Rupee drops to lifetime low of 83.7525 vs dollar on outflow worries
Toyota Motor Corp.'s shares dropped 11 per cent and Honda Motor Co. lost 13.4 per cent. Computer chip maker Tokyo Electron dived 15.8 per cent and Mitsubishi UFJ Financial Group plunged 18.4 per cent.