URGENT: Nikkei stock index extends losses, down over 2%

©Kyodo News

The Nikkei stock index extended its losses Monday morning, briefly dropping more than 2 percent, after the Dow Jones Industrial Average sagged late last week following the Federal Reserve's decision to end temporary relief from capital-requirement rules for banks.

At around 9:45 a.m., the 225-issue Nikkei Stock Average was down more than 620 points, or 2.1 percent.

Automakers were hit by a fire late last week at a factory of major Japanese chipmaker Renesas Electronics Corp. that the company president said Sunday could result in a substantial cut in supply to customers including automakers.