Japan's stock market indices fell over 12% on Monday, witnessing its worst crash since the infamous 1987 crash as investors fret over a possible recession in the US.

What Happened: Nikkei 225 index nosedived over 12.4% to 31,458.42, losing 4,451.28 points while the Topix plunged 12.23% to 2,227.15, falling 310.45 points on Monday. 

The Japanese stock markets have been under pressure after the Bank of Japan raised the policy rate to 0.25% for only the second time in 17 years.

Nikkei's rout was the worst the index has seen since the "Black Monday" of 1987 when the index fell 14.9%. 

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US markets had fallen on Friday after the publication of weaker-than-expected job data. The U.S. non-farm payroll was at 114,000 jobs in July, compared with a monthly average of 215,000 jobs last year.

S&P 500 had fallen 1.84% on Friday after the data came out. The rout in Nikkei had spread to other Asian Markets which includes India.

Nifty 50 was down 3.21% to 23,925.20 by Monday afternoon. S&P 500 Futures were down 2.81% on Monday ahead of the U.S. market open, signalling further weakness. 

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