TOKYO (AP) — Global stock markets endured sharp losses Thursday as gyrations on the Tokyo market, the Asian region's biggest, continued — fueled by worries about a surging yen and monetary policies in the U.S.
Investor skepticism about the economic strategies of Prime Minister Shinzo Abe for extricating Japan from two decades of stagnation also figured high in the Nikkei 225's big drop.
"The markets have been nervous for some time, and there was disappointment among some investors," said Katsuyuki Hasegawa, chief market economist at Mizuho Research Institute in Tokyo.
Japanese media reports said overseas hedge funds may be dumping Japan's equities following disappointment over the Bank of Japan's decision earlier in the week to refrain from additional monetary easing measures.
The Nikkei 225 index plunged 6.4 percent to close at 12,445.38. Adding to the woes was the dollar's recent fall, trading at about 94 yen late Thursday, slipping momentarily to 93-yen levels. A cheap yen is a boon for Japan because it helps the nation's giant exporters by raising their overseas revenue when translated into yen.
In early European trading, Britain's FSTE 100 fell 1.2 percent to 6,223.75. Germany's DAX fell 1.9 percent to 7,987.19 while France's CAC-40 shed 1.2 percent to 3,749.03. Ahead of the opening bell, Wall Street appeared headed for losses. Dow Jones futures fell 0.5 percent to 14,908 while S&P 500 futures lost 0.5 percent to 1,601.70.