Nikkei drops over 2% in morning on worries over U.S. rate hikes

© Kyodo News

Tokyo stocks plunged Thursday morning, with the Nikkei index dropping over 2 percent to its lowest intraday level in 14 months, on growing concern that the U.S. Federal Reserve may raise interest rates faster than expected.

The 225-issue Nikkei Stock Average slid 690.00 points, or 2.55 percent, from Wednesday to 26,321.33. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 37.47 points, or 1.98 percent, at 1,854.38.

Every industry category lost ground except for mining and insurance issues. Precision instrument, service, and information and communication issues led decliners.