A woman walks by an electronic stock board of a securities firm in Tokyo, on Dec. 20, 2021. (AP Photo/Koji Sasahara)

       TOKYO (Kyodo) -- Tokyo stocks plunged Monday, with the Nikkei index falling more than 2 percent to below the 28,000 mark, hit by concerns over China's economy after its central bank cut a benchmark lending rate for the first time since April 2020.

       The 225-issue Nikkei Stock Average ended down 607.87 points, or 2.13 percent, from Friday at 27,937.81, its lowest closing level since Dec. 6. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 43.14 points, or 2.17 percent, lower at 1,941.33.

       Every industry category lost ground, led by securities house, mining and rubber product issues.

       The U.S. dollar remained weak in the mid-113 yen range as the Japanese currency, seen as a safe-asset, was bought on renewed fears over the new Omicron variant of the coronavirus, which has been detected in about 90 countries and regions, dealers said.

       Tokyo stocks opened lower on worries over the impact of the Omicron variant on the global economy, especially after European countries saw a surge in infections late last week, brokers said.

       Stocks extended their losses in the afternoon after the People's Bank of China cut its one-year loan prime rate to 3.80 percent from 3.85 percent to support the world's second-largest economy amid sluggish personal consumption and the sporadic spread of the coronavirus.

       The decision by the Chinese central bank came as U.S. and European banks are moving toward raising interest rates to fight inflation. The Bank of England raised interest rates last week, while the U.S. Federal Reserve also signaled three rate hikes next year.

       "The lowering of the lending rate triggered worries over whether the Chinese economy is OK, especially as market participants had expected the bank to keep the rate unchanged," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

       "Investors turned risk averse because of fears over the Omicron variant and renewed concerns that the Chinese economy may stall," he said.

       On the First Section, declining issues outnumbered advancers 2,051 to 115, while 18 ended unchanged.

       Air and land transportation issues were sold amid worries over the spread of infections.

       Japan Airlines fell 47 yen, or 2.2 percent, to 2,058 yen, while Tobu Railway dipped 13 yen, or 0.5 percent, to 2,633 yen and Keio, another railway operator, dropped 70 yen, or 1.4 percent, to 5,080 yen.

       Meanwhile, pharmaceutical company Eisai declined 98 yen, or 1.4 percent, to 6,876 yen after the European Medicines Agency adopted a negative tone on giving marketing authorization for its Alzheimer's drug jointly developed with U.S. biotech giant Biogen Inc.

       Volume on the main section fell to 1,142.33 million shares from Friday's 1,440.02 million shares.

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