Nikkei 225 Plummets Amid US Economic Concerns

Japan's Nikkei 225 index dropped nearly 13% due to concerns over the US economy, marking its worst two-day decline ever. Major companies such as Toyota and Honda saw significant losses. The decline follows the Bank of Japan’s interest rate hike and reflects broader investor unease.

Japan's Nikkei 225 share index plunged nearly 13 percent on Monday, fueled by investor concerns that the US economy may be in worse shape than anticipated. By midafternoon in Tokyo, the index was down 12.9 percent at 31,290.63.

After dropping 5.8 percent on Friday, this movement signals the Nikkei's worst two-day decline ever. The index has faced major losses in the past, such as a 14.9 percent drop on 'Black Monday' in October 1987 and significant falls during the global financial crisis in 2008 and the aftermath of the 2011 earthquakes and nuclear meltdowns in northeastern Japan.

Share prices have been falling in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. This hike has triggered a broad wave of selling across many companies, including a sharp 11 percent drop for Toyota Motor Corp., 13.4 percent loss for Honda Motor Co., 15.8 percent dive for Tokyo Electron, and an 18.4 percent plunge for Mitsubishi UFJ Financial Group.

(With inputs from agencies.)