TOKYO, Aug 4, 2025 (BSS/AFP) - Japan's Nikkei index dropped two percent on Monday after weak US jobs data prompted sharp losses on Wall Street.

In early trade the Nikkei 225 was down 2.07 percent at 39,930 points.

The US jobs numbers on Friday raised fears about the health of the world's biggest economy and also sent European markets sharply lower.

Yields on US Treasury bonds also fell sharply as the data raised expectations that the US Federal Reserve will cut interest rates.