Tokyo stocks plunged Monday morning, with the Nikkei index briefly losing over 2 percent, weighed down by concern over European political turmoil and a sell-off of Toyota Motor as the impact of a vehicle test scandal lingers.

The 225-issue Nikkei Stock Average dropped 708.15 points, or 1.82 percent, from Friday to 38,106.41. The broader Topix index was down 40.90 points, or 1.49 percent, at 2,705.71.

The U.S. dollar was largely flat in the mid-157 yen range in Tokyo amid few fresh trading cues.

At noon, the dollar fetched 157.44-45 yen compared with 157.40-50 yen in New York and 157.66-68 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.0704-0705 and 168.52-55 yen against $1.0701-0711 and 168.52-62 yen in New York and $1.0707-0708 and 168.81-85 yen in Tokyo late Friday afternoon.

Stocks fell across the board, as sentiment was hit by declines in U.S. and European markets on fears of political turmoil in Europe, as French President Emmanuel Macron's position could be threatened by the far right in upcoming parliamentary elections, brokers said.

Among notable decliners, Toyota was sold heavily after the auto giant said Friday it will continue to suspend production until the end of July of three models for which certifications were obtained improperly.

Mitsubishi UFJ Financial Group also plunged after Japan's securities watchdog recommended to the Financial Services Agency that a bank and two brokerage firms under the group be punished for sharing clients' confidential information without consent.

"Anxieties over Europe as well as concerns about issues related to top companies poured cold water" on the market, said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.

==Kyodo

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