TOKYO, Feb 28 ― Tokyo's key Nikkei index plunged more than three per cent at the open today after US and European sell-offs, with investors worried about the economic impact of the coronavirus outbreak.

The Nikkei 225 lost 3.08 per cent, or 676.55 points, to 21,271.68 while the broader Topix index was down 2.98 per cent, or 46.67 points, at 1,521.39.

European and US stock markets slumped painfully again yesterday as coronavirus infections spread outside China, exacerbating fears of a global slowdown.

Wall Street took a beating, with major indices shedding more than four per cent in what is shaping up to be the US market's worst week since the 2008 financial crisis.

"Japanese stocks are experiencing an inevitable hit from the US market rout,” Seiichi Suzuki, senior market analyst at Tokai Tokyo Research Institute, told AFP.

"Since the US market was unusually strong earlier, once it took a downturn, it's a hard plunge,” he said. "Selling has been inviting more selling.”

Suzuki said no one knew when the drop would stop.

"The bottom could be today or one week ahead... As for the spread of the virus, even infectious diseases experts don't know. How can market people know?”

The dollar was trading at ¥109.52 (RM4.21) against ¥109.69 in New York yesterday afternoon. ― AFP