Tokyo-Tokyo stocks closed lower Monday with investors disheartened by global selloffs linked to growing fears over an economic slowdown.

The benchmark Nikkei 225 index plunged 2.66 percent, or 722.28 points, to end at 26,431.55, while the broader Topix index lost 2.71 percent, or 51.84 points, to 1,864.28.

The dollar fetched 143.89 yen, against 143.31 yen on Friday in New York.

Recession fears spread on Friday after central banks ramped up interest rates to combat decades-high inflation, causing stock markets to tumble and the pound to crash against the dollar.

The Federal Reserve’s decision Wednesday to again lift borrowing costs by 75 basis points was followed by a warning that more big rises were in the pipeline and that rates would likely come down only in 2024.

There were similar moves by central banks in other countries, including Britain, Sweden, Norway, Switzerland, the Philippines and Indonesia— all pointing to a dark outlook for markets.

“Last week’s monetary policy meetings around the world highlighted the prospect that rate hikes will continue, which is having a negative impact on Japanese stocks, too,” Makoto Sengoku, senior equity market analyst at Tokai Tokyo Securities, told media.

“Stock prices also keep going down, leaving more and more investors feeling uncertain,” he added.

Among major shares in Tokyo, SoftBank Group nosedived 5.18 percent to 5,066 yen, Sony Group plummeted 3.85 percent to 9,682 yen and Toyota plunged 3.20 percent to 1,963 yen. 

Uniqlo operator Fast Retailing ended down 0.83 percent at 80,600 yen.