Major Asian stock markets have endured further sharp falls, with Europe tipped to follow, as investors fret over the world economy and the outcome of the UK’s Brexit vote.
Japan’s Nikkei closed 3.1% down in the wake of a rush for the yen – hammering the market values of exporters – after the country’s central bank held off on introducing more economic stimulus despite the recent market turmoil.
The yen, a safe haven for investors in troubled times, has surged to a 21-month high against the US dollar.
It is a scenario that is seen as a huge threat to Japan’s economic recovery because of the country’s reliance on major exporters.
While the Bank of Japan’s decision to leave its massive 80 trillion yen (£540bn) asset-buying plan unchanged this month was of no great surprise, the lack of action contributed to jitters over the wider slowdown in the world economy.
Its core interest rate is in negative territory in a bid to stoke spending and inflation.