Japanese markets suffer worst single day loss

Japanese markets saw intense selling pressure on concerns that the U.S. economy may be in worse shape than previously expected.

The Nikkei average nosedived 12.40 percent to 31,458.42, marking its biggest fall since "Black Monday" in October 1987, when it plunged 14.9 percent. The broader Topix index settled 12.23 percent lower at 2,227.15.

Tech stocks suffered heavy losses due to an unwinding of the artificial intelligence trade. Screen Holdings, Advantest, Tokyo Electron and SoftBank Group slumped 13-19 percent.

The services sector in Japan bounced back up into expansion territory in July, the latest survey from Jibun Bank revealed on Monday with a services PMI score of 53.7.

That's up from 49.4 in June, and it moves above the boom-or-bust line of 50 that separates expansion from contraction.

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