Japan's Nikkei 225 stock index sinks 12.4% as investors dump a wide range of shares

Nikkei 225 plunged more than 12% on Mon as investors worried that the U.S. economy may be in worse shape than had been expected dumped a wide range of shares.

The Nikkei index shed 4,451.28 to 31,458.42. It dropped 5.8% on Fri and has now logged its worst two-day decline ever, dropping 18.2% in the last two trading sessions.

At its lowest the Nikkei plunged as much as 13.4%, 2nd largest ever percentage drop. Its biggest single-day rout was a drop of 3,836 points, or 14.9%, on the day dubbed "Black Monday" in Oct 1987. It suffered an 11.4% drop in Oct 2008 during the global financial crisis and fell 10.6% during the aftermath of massive earthquakes and nuclear meltdowns in northeastern Japan in Mar 2011.

Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wed. The benchmark is now about 3.8% below the level it was at a year ago.

The wave of selling hit all sorts of companies.

Toyota Motor Corp.'s shares dropped 11% and Honda Motor Co. lost 13.4%. Computer chip maker Tokyo Electron dived 15.8% and Mitsubishi UFJ Financial Group plunged 18.4%.