Tokyo: Japan`s Nikkei share average tumbled 2.2 percent to 4-1/2-month lows on Thursday hit by deepening worries about weak global growth, lifting the safe-haven yen and dragging down exporters such as Toyota Motor Corp and Honda Motor Co.
The Nikkei ended 335.14 points lower at 14,738.38, its lowest closing level since May 30.
The benchmark stayed below its 200-day moving average for the third consecutive day.
"It`s clear that people are avoiding risks," said Takatoshi Itoshima, chief portfolio manager at Commons Asset Management, adding that investors have started to doubt whether the U.S. economic recovery was strong enough to sustain the Japanese stock market.
The U.S. economy has been a relatively bright spot in the otherwise darkening global economic picture, and investors have rushed into dollars as a result.
"The yen is now strengthening without any supportive measures, so we are just going to be pushed down on moves in the yen for the time being," Itoshima said. "But I think selling is nearing a climax - unless there are further negative developments in global growth."
Exporters were battered, with Toyota falling 1.9 percent, Honda sinking 3.9 percent and Panasonic Corp shedding 3.6 percent.
Japanese staffing firm Recruit Holdings Co Ltd surged in its market debut to 3,330 yen, compared with their IPO price of 3,100 yen.
Fujifilm Holdings Corp and other Ebola-related stocks jumped on speculation over which companies would generate higher returns from fears of deadly virus Ebola intensifying in the United States.
Fujifilm gained 1.8 percent and industrial air purifier maker Airtech Japan Ltd jumped 27 percent.
The Topix fell 2.3 percent to 1,195.50, and the JPX-Nikkei Index 400 declined 2.2 percent to 10,891.85.
