BREAKING: Nikkei 225 PLUNGES more than 700 points as global market MELTDOWN continues

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The market started at 21890.43 and sharply plummeted to 21150.28 that surely sent horrifying fears into the hearts of investors.

Asia shares fell sharply on Tuesday after Wall Street suffered its biggest decline since 2011.

The market’s share average dived on Tuesday morning to a level not seen since late October after Wall Street plunged overnight on concerns about rising bond yields and potentially rising inflation.

Nikkei fell to as low as 21,698.52 and was down 4 per cent in the early morning.

The broader Topix fell 4.3 percent to 1,745.79.

The Nikkei is headed for a loss of 8.6 per cent this week.

Nikkei hit a record high on January 29 – the incredible decline is seen by many experts as a “correction phase”.

A senior strategist at Sumitomo Mitsui Asset Management in Tokyo, Masahiro Ichikawa, declared that the tumultuous markets could continue to fluctuate until March.

He stated: “The correction phase in equities could last through February and possibly into March.

“The rise in long-term US yields will have to settle for the correction phase to end.

“The surge in volatility has also prompted investors to sell risk assets, in turn, feeding more volatility.”

The trigger to the week of market woes was a sharp rise in US bond yields following last week’s data that showed US wages increasing at the fastest pace since 2009, raising the alarm about higher inflation.

The 10-year US Treasuries yield rose to as high as 2.885 per cent on Monday, its highest in four years and 47 basis points higher than 2.411 per cent at the end of 2017.

The yield did pull back to 2.709 per cent on a continued rout in equity markets.

The CBOE Volatility index, the closely followed measure of expected near-term stock market volatility and often seen as a gauge of investors fear, jumped 20 points to 30.71, its highest level since August 2015.

Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities, said: ”For the last several months, whether it’s stocks or commodities, risk-takers had been the winners. And that’s what hedge funds, which now manage $3.2trillion, have been doing.

“Their leveraged position is now being unwound. And it seems as though there are still some people who haven’t run away (from the sell-off) yet. I would expect more instability.”

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