Global Markets Shake as Nikkei 225 Index Plummets Amid US Economy Concerns

Japan's Nikkei 225 stock index plunged by up to 8.1%, reflecting global market jitters over the US economy. The broader TOPIX also fell 8% amid concerns sparked by disappointing US employment data. Other Asian markets, including South Korea's Kospi and Taiwan's Taiex, experienced significant drops as well.

Japan's benchmark Nikkei 225 stock index plunged as much as 8.1% early Monday, extending sell-offs that shook global markets last week amidst fears over the US economy. The Nikkei dropped more than 2,900 points to 32,991.88, with the broader TOPIX index also falling 8% as afternoon trading intensified.

The Nikkei 225 fell 5.8% on Friday, marking its worst two-day decline ever, exacerbated by the Bank of Japan's recent interest rate hike due to prolonged yen weakness and inflation concerns. Early Monday, the yen stood at 143.07 per dollar, down from 146.45 late Friday, while the euro slightly increased to USD 1.0934.

The recent setback has heavily impacted markets dominated by tech shares. South Korea's Kospi fell 6.5%, Taiwan's Taiex lost 7.4%, and major US indexes like the S&P 500 and Dow Jones Industrial Average also saw declines. Financial markets worldwide remain on edge, worried about a potential recession triggered by sustained high interest rates.

(With inputs from agencies.)