The Nikkei stock index closed at its largest single-day point drop in history on August 5, tumbling over 4,400 points and down over 12 per cent, hit by concerns over a US recession and a firming yen.

The 225-issue Nikkei Stock Average ended down 4,451.28 points, or 12.40 per cent, from Friday at 31,458.42. The broader Topix index fell 310.45 points, or 12.23 per cent, to 2,227.15, Japan’s News Agency (Kyodo) reported.

The US dollar plunged by nearly 5 yen from late last week to a fresh seven-month low in the upper 141 yen zone amid growing speculation that the Federal Reserve will cut interest rates significantly in September.