TOKYO: Tokyo stocks plunged 3.51 percent Wednesday afternoon as selling pressure grew in late trading following a fall on Wall Street and as the yen's strength weighed.
The benchmark Nikkei 225 index lost 505.58 points to 13,895.48 on the Tokyo Stock Exchange.
"Selling pressure accelerated in afternoon trade as the yen was gaining ground," said Kenzaburo Suwa, strategist with Okasan Securities.
US stocks ended lower Tuesday as fresh economic data and comments from Federal Reserve officials pointed to the likely pullback in Federal Reserve's stimulus in the coming months. The scheme has been credited with boosting global equity markets.
The Dow Jones Industrial Average fell 0.60 percent to 15,518.74, its biggest one-day loss since June.
On currency markets, the dollar fell against the yen despite signs the Fed stimulus would be rolled back in the near future.
A pullback on the scheme means fewer dollars in the financial system, boosting demand and the unit's value.
The greenback fetched 97.19 yen in Tokyo afternoon trade against 97.76 yen in New York Tuesday afternoon and the 98-yen range in Tokyo Tuesday.
A strong yen tends to weigh on shares of Japanese exporters as it makes their products less competitive while eroding their foreign income when repatriated. (AFP)
