Japan's Nikkei Dives Over 3 Percent In Early Trade

Tokyo stocks dropped more than three percent on Friday after European and US stocks suffered big drops as volatility continued to dog equity markets.

The benchmark Nikkei index fell 3.19 percent to 21,192 in early trade, while the broader Topix index was down 3.05 percent at 1,711.

"Investors are discouraged by a higher yen and plunges in European and US stocks," Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

The dollar fetched 108.59 yen in early Asian trade, down from 108.74 in New York and from 109.61 yen in Tokyo on Thursday.

Overnight on Thursday, the three major US indices plunged, with the Dow Jones Industrial Average plummeting 4.2 percent to 23,860.

The broad-based S&P 500 sank 3.8 percent and the tech-rich Nasdaq Composite Index dived 3.9 percent.

In Tokyo, Nissan dropped 4.85 percent to 1,107 yen after the Japanese car giant slashed its forecast for full-year operating profit.

Its rival Toyota was down 2.79 percent at 7,340 yen. (AFP)