Japanese stocks enter correction with 5% fall

Japan's Nikkei 225 has suffered its second huge fall in a little over a week after the index closed down 5% overnight.

Building on last week's 7% fall, investors dumped more stock last night to leave the index down 5.2% at 13,589 points. From a peak of 15,919 points last week, the index has now shed well over 10%. This leaves the Nikkei in correction territory, defined as a fall of 10% or more from its recent peak. Whether this is a good buying opportunity remains to be seen, but analysts said it has taken some of the heat out of the recent rally. Other indices also suffered yesterday as nervous investors took profits from a host of indices. The FTSE 100 closed down 2% at 6,627 points, while the...