Japan’s Nikkei slumps more than 10 percent in worst losses since 1987

Fears about the health of the US economy are hitting Japan’s stock market and share indices around Asia.

Japanese stocks have recorded their biggest losses since October 1987, extending last week’s sell-off spurred by concerns the United States’ economy may be in weaker health than previously thought.

The Nikkei share average was down 10.01 percent or 3,595.30 points to 32,314.40 in the early afternoon, its lowest in months.

The index has dropped sharply from its peak in July, and is on course for its biggest two day plunge ever.

“Domestic equities tanked purely because of the worries that the US economy may be heading to a recession,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

US stocks sold off for a second straight session on Friday after a weak jobs report raised fears of an oncoming recession and expectations that the Federal Reserve will make a hefty rate cut in September.