Japan’s Nikkei closes down more than 4% after Wall Street drop

Japan’s key Nikkei index dived more than four percent on Wednesday, weighed down by falls on Wall Street and a higher yen against the dollar.

The benchmark Nikkei 225 closed down 4.24 percent, or 1,638.70 points, at 37,047.61, while the broader Topix index ended down 3.65 percent, or 99.78 points, at 2,633.49.

“Sell orders by traders who want to avoid risks linked to falls in US tech shares and the yen’s appreciation are dominating,” Daiwa Securities said.

The dollar fetched 145.16 yen in Asian trade, down slightly from 145.87 yen in New York.

Major US indices spent the entire day in the red before Asian markets opened, with the Nasdaq finishing down more than three percent.

The tech-focused Nasdaq closed down 3.3 percent, the blue-chip Dow Jones Industrial Average fell 1.5 percent, while the broad-based S&P 500 shed 2.1 percent.

Among major shares in Tokyo, SoftBank Group plunged 7.73 percent to 7,781 yen, while chip-making equipment manufacturer Tokyo Electron dropped 8.55 percent to 22,995 yen.