Tokyo stocks plunged more than four percent in opening trade Tuesday with investor sentiment hit by a sell-off on Wall Street and the yen's surge against the dollar.
The benchmark Nikkei 225 index lost 4.16 percent or 943.70 points to 21,738.38 in early trade while the broader Topix index was down 3.94 percent or 71.94 points at 1,751.80.
Wall Street stocks plunged in chaotic trading on Monday, as the Dow's gains for 2018 were erased in a brutal pullback from months of stock market euphoria that had been acclaimed by President Donald Trump.
The Dow Jones Industrial Average saw its steepest ever one-day point drop, wiping 4.6 percent off the value of America's 30 largest companies to finish at 24,345.75, having at one point plummeted nearly 1,600 points to a low of 23,923.88.
The Japanese currency, which often draws safe-haven buying in times of uncertainty, held firm after jumping on Monday, darkening the outlook for Japanese exporters.
The dollar was trading at 109.10 yen against 109.13 yen in New York, sharply lower than rates around 110 yen seen a day earlier.
A strong yen hits Japanese exporters as it makes their products less competitive abroad and erodes profits when repatriated.