Tokyo stocks plummet after U.S. credit rating downgrade

Tokyo stocks plummeted Wednesday, with the Nikkei suffering its largest drop this year, hit by concerns over the downgrading of U.S. debt by a major credit rating agency and moves to lock in gains after the benchmark climbed to a one-month high.

The 225-issue Nikkei Stock Average ended down 768.89 points, or 2.30 percent, from Tuesday at 32,707.69, after losing over 800 points at one point. The broader Topix index finished 35.60 points, or 1.52 percent, lower at 2,301.76.

Decliners were led by insurance, securities house, and electric power and gas shares.