Tokyo Stocks Dive Another 500 Points in Early Trading

Tokyo stocks plunged more than 500 points in early Tuesday trading on widespread nervousness over sagging bond prices, a weak yen and the market’s major decline Friday, traders said.

The key 225-share Nikkei index was down 537.95 points, or 1.43%, at 36,978.82 in the first 20 minutes of trading as stocks were sold almost across the board.

The index had plunged 653.36 on Friday, the eighth-largest one-day point drop in history.

Japanese financial markets were closed for a public holiday Monday, and U.S. trading was limited because of the Martin Luther King holiday in the United States.

“What happens in the stock market will depend on whether or not bond prices come up or not,” said Tadaaki Uehara, deputy general manager at Wako Securities. Too many sell orders blocked trade in many stocks at the opening.

“Conditions are about as bad as they could be right now,” Uehara said.