European markets fall as Nikkei plummets 4%

SHARP falls in Japanese stocks led to a decline in Irish and European markets yesterday.

Tokyo’s Nikkei index fell by almost 4% to a three-month low as investors reacted to concerns over Japanese and American stocks and cashed in gains from recent days. Dublin’s ISEQ responded with a 1% fall, while Frankfurt’s DAX lost almost 3%.

The Nikkei fell below the key 10,000 level for the first time in three months, which triggered further selling by hedge funds.