Asian markets dived on Thursday, with Tokyo’s Nikkei losing more than six per cent at one point, and the dollar hit a two-month low against the yen on expectations that central banks’ monetary easing measures will end soon.

Dealers ran for cover after a Wall Street sell-off, with the US Federal Reserve in focus before a policy meeting next week that many fear will herald the end of its USUS$ 85 billion-a-month bond-buying.

Tokyo had slumped 4.61 per cent in the afternoon, having crumbled 6.57 per cent at one point in the morning.