Nikkei Average Falls Sharply
Tokyo stocks plunged on Monday, following a drop in New York on Friday.
The Nikkei Average finished the day at 28,010, down 953 points, or 3.29 percent, from Friday's close.
The index fell more than 1,100 points at one stage.
This follows comments by a US Federal Reserve official about rate hikes possibly coming next year as part of moves by the central bank to tighten its easy-money policy.
The market's recent upswing has been supported by surplus funds from the monetary easing.
Analysts say investors view a tapering of the Fed's massive measures as a risk for share prices.