Japan's Nikkei falls 3% as yen strengthens against dollar

The benchmark Nikkei 225 index slipped to 38,496.66 in afternoon trade, while the yen advanced to 146.60 per dollar.

Japan's Nikkei index fell three percent on Monday as the yen strengthened against the dollar and semiconductor stocks suffered a sell-off.

A person walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm. (AP)

The benchmark Nikkei 225 index slipped to 38,496.66 in afternoon trade, while the yen advanced to 146.60 per dollar.