TOKYO, Aug 5 (Bernama-Kyodo) -- The Nikkei stock index plunged more than 3,000 points on Monday over fears of recession in the United States (US), with the dollar falling to a fresh seven-month low in the upper 142 yen zone.
According to Kyodo news agency, a stock circuit breaker was triggered for the Nikkei and Topix futures markets following the steep falls, temporarily halting trading.
At 2 pm, the 225-issue Nikkei Stock Average had tumbled 3,219.49 points, or 8.97 per cent from Friday to 32,690.21. The broader Topix index was down 244.83 points, or 9.65 per cent, at 2,292.77.
Widespread sell-offs gripped stocks from the outset after weaker-than-expected US jobs figures for July added to a recent batch of disappointing economic data, stirring concern about a recession in the world's largest economy.
The slowdown in growth raised speculation that the US Federal Reserve will cut interest rates significantly in September, narrowing the interest rate gap between the United States and Japan.
The yen has also surged since the Bank of Japan raised interest rates last week, with growing speculation about another hike within the year.
-- BERNAMA-KYODO
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