Tokyo’s benchmark Nikkei stock index fell sharply on Monday following declines in overseas markets last week.
The Nikkei 225 ended the day at 38,102, down 712 points, or 1.8 percent, from Friday.
Investors unloaded shares across a wide range of sectors. The sell-off came after falls in European and US markets.
The main index in Paris plummeted last week amid the continuing political uncertainty in France. Stocks also headed lower in New York due to concerns about the economic outlook.
Analysts say some investors are steering clear of Japanese stocks due to a lack of clarity in the Bank of Japan’s monetary policy.
The central bank has said it will scale down purchases of long-term government bonds. But it won’t decide on the details of the tapering until its next meeting in July.