Tokyo’s Nikkei index closes down 2.5%

Tokyo's key Nikkei index closed down more than 2.5 per cent on Monday, tracking US falls on concern over higher interest rates, with focus shifting to Japanese corporate earnings.

The Nikkei 225 index tumbled 2.53 per cent, or 684.22 points, to end at 26,319.34, while the broader Topix index lost 1.96 per cent, or 37.52 points, to 1,878.39.

"The Nikkei index opened lower after losses on Wall Street, and... dropped by 600 points, with falls fuelled by the sale of US futures," Okasan Online Securities said.

Analysts also noted negative factors such as Russia's celebration of Victory Day and China's lockdown policies. 

Hideyuki Suzuki, head of stocks investment information at SBI Securities, told AFP it was "very difficult for investors to make active moves, given concern over developments related to the Russia-Ukraine war".

Traders were also eyeing upcoming corporate earnings, he added.