Japan's Nikkei index sinks 10% in worst losses since 1987

Japan's Nikkei 225 share index plunged as much as 10 per cent on Monday on heavy selling triggered by worries the US economy may be in worse shape than had been expected.

According to Report, the Nikkei index was down more than 3,500 points at 32,385.01 by midday Monday in Tokyo.

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. Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday.