Japan stocks plunge as much as 7% as Asia shares extend sell-off

Asian stock markets experienced significant declines, with Japan's Nikkei 225 and Topix dropping as much as 7%, nearing bear market territory after falling nearly 20% from their all-time highs in July. Major trading houses like Mitsubishi and Mitsui saw their shares plunge over 10%. The yen strengthened against the dollar, trading at approximately 145.42. This sell-off followed a poor performance on Friday, where the Nikkei and Topix recorded their worst days since March 2020 and in eight years, respectively. Other regional markets also faced losses, with Taiwan's Taiex down nearly 8% and Australia's S&P/ASX 200 falling 2.84%. South Korea's Kospi and Kosdaq dropped 4.38% and 4.63%, respectively, while Hong Kong's Hang Seng index saw a smaller decline of 0.22%. In contrast, mainland China's CSI 300 was slightly up. Investors are awaiting key trade data from China and Taiwan, as well as central bank decisions from Australia and India. The Reserve Bank of Australia's monetary policy meeting is underway, with expectations to maintain interest rates at 4.35%. In the U.S., stocks also fell sharply due to a weaker-than-expected jobs report, raising concerns about a potential recession, with the Nasdaq entering correction territory. The S&P 500 and Dow Jones Industrial Average also experienced notable declines.