Tokyo stocks dropped more than 1 per cent in early trade on Monday amid growing concerns about the global economy following the U.S. credit rating downgrade.

As of 9:14 am (0014 GMT), the benchmark Nikkei 225 Stock Average had lost 124.22 points, or 1.34 per cent, to trade at 9,175.66.

The broader-based Topix index was down 11.37 points, or 1.42 per cent, at 789.59.

On currency markets at 9 am (0000 GMT), the dollar traded at 78.28-29 yen, down from Friday’s 5 pm quote of 78.53-55 yen.

The euro traded at 1.4306-4309 dollars, up from 1.4158-4160 dollars Friday, and at 111.98-112.00 yen, up from 111.18-22 yen.

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