The benchmark Nikkei average on Monday lost more than 2,500 points from Friday's close of 35,909 in early trading on the Tokyo Stock Exchange.

Investors are unnerved by growing concern over the US economy. Weaker-than-expected jobs data fueled the fears, sending the Dow and other major indexes sharply lower in New York on Friday.

The yen's appreciation is also contributing to the stock market rout in Tokyo. Investors are unloading shares, as the Japanese currency strengthened to the mid-145-yen level against the dollar.