TOKYO (Kyodo) -- The Nikkei index ended at a one-month low in Tokyo on Monday as investor sentiment was hurt by concern that the financial crisis in Turkey will have a spillover effect on the world economy.
The 225-issue Nikkei Stock Average ended down 440.65 points, or 1.98 percent, from Friday at 21,857.43. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 36.66 points, or 2.13 percent, lower at 1,683.50.
Decliners were led by machinery, marine transportation and nonferrous metal issues.
The Nikkei briefly fell over 2 percent as market players grew risk averse on concerns that banks holding Turkish bonds may suffer losses as a result of the financial crisis in the country, brokers said.
"It is true that European banks' exposure to Turkey is highest, but Japan has also lent money to the country, prompting selling in Japanese bank issues such as Sumitomo Mitsui (Financial Group)," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.
Sumitomo Mitsui Financial Group shed 93 yen, or 2.1 percent, to 4,280 yen and Mitsubishi UFJ Financial Group dropped 18.60 yen, or 2.8 percent, to 650.90 yen.
The yen's rise against the dollar and the euro due to the Turkish woes also weighed on the market.
A deepening U.S.-Turkey trade rift also hurt sentiment on exporter issues, with Isuzu Motors off 53.50 yen, or 3.3 percent, at 1,586.00 yen and Honda Motors down 96 yen, or 2.9 percent, at 3,272 yen.
On the First Section, declining issues outnumbered advancers 1,884 to 191 with 28 ending the day unchanged.
Semiconductor-related issues drew selling, tracking losses in U.S. counterparts on Friday. Screen Holdings sank 470 yen, or 5.8 percent, to 7,660 yen and Tokyo Electron dipped 575 yen, or 3.1 percent, to 18,185 yen.
Trading volume on the main section rose to 1,523.64 million shares from Friday's 1,507.92 million shares.