Nikkei tumbles 2.4% on global growth concerns

Japan's Nikkei share average tumbled 2.4 percent to a fresh two-month closing low on Tuesday on fears global economic weakness will weigh on US growth, while a stronger yen dragged down exporters such as Toyota Motor Corp and Honda Motor Co.

The Nikkei share average dropped 364.04 points to end at 14,936.51, the lowest closing level since Aug. 8.

It also broke below its 200-day moving average, also for the first since Aug. 8.

Exporters led the declines hit by a stronger yen, with Toyota falling 3.9 percent, Honda dropping 2 percent and Panasonic Corp declining 3.1 percent.

The dollar crawled up 0.4 percent to 107.235 yen, but remained in close range of a one-month low of 106.76 hit earlier in the session.

Falling crude oil prices hurt such oil shares as Inpex Corp and Japan Petroleum Exploration, shedding 1.1 percent and 3.2 percent, respectively.

The International Monetary Fund's member countries on Saturday said bold action was needed to bolster the global economic recovery and they urged governments not to squelch growth by tightening budgets too drastically, although Germany poured cold water on the idea of a new global "crisis."

"Just a while ago, people were talking about the pace of US rate hikes. But at the G20 meeting last weekend, the focus was whether Europe may undercut US growth," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

"Whether the US market will enter a long-term correction is the main concern now. If it does, the Japanese market will likely follow suit."

Immediate technical support is seen at 14,753, the lowest intraday level market since Aug. 8, traders say.

The broader Topix shed 2.3 percent to 1,214.27 with heavy trade, and the JPX-Nikkei Index 400 declined 2.2 percent to 11,054.02.