Godzilla Tokyo JapanChris McGrath/Getty ImagesA 6.6-meter replica of Godzilla at Tokyo Midtown in 2014 in Tokyo.
It has been a tumultuous, nerve-jangling session for Japanese markets.
The benchmark Nikkei 225 index lost more than 900 points, closing the session at 16,085.44.
The 5.4% decline is the largest since June 13, 2013, and left the index sitting precariously above the 16-month low of 16,017.26 struck on January 21.
Since the high January 29, the day the Bank of Japan adopted a zero-interest-rate policy, the index has lost more than 10%.
As with markets in Europe and the US, financials led the losses, with a decline of 7%.
All other sectors finished in the red, with utilities, down 2.63%, the standout performer for the session.
While concerns over the outlook for the global economy contributed to the decline, renewed strength in the Japanese yen — coming despite additional easing from the Bank of Japan less than two weeks ago — was also a major factor behind the Nikkei's decline.
The USD/JPY briefly hit a low of 114.25 midway through the session, marking the strongest the yen has been against the US dollar since November 2014.
In late trade it buys 114.72, down 1% from the New York close.
While continued easing of monetary policy by the Bank of Japan has done little weaken the yen, it has certainly affected Japan's government bond market.
The easing, along with renewed global growth fears, saw yields on benchmark 10-year Japanese government debt fall below 0%, taking them to lows never witnessed before.
So to recap: Stocks slumped by over 5%, recording their largest decline in nearly three years, and the yen hit a 15-month high, while benchmark JGB yields fell to the lowest level on record.
Another amazing session, and one that sets up an interesting open for European markets pummeled in a similar fashion on Monday.
Read the original article on Business Insider Australia. Copyright 2016.