TOKYO, Sept. 30 (Xinhua) -- Japan's benchmark Nikkei stock index closed sharply lower on Friday following Wall Street's overnight slump amid mounting concerns that aggressive rate hikes by the Fed and other central banks will trigger a global economic slowdown.

The 225-issue Nikkei Stock Average dropped 484.84 points, or 1.83 percent, from Thursday to close the day at 25,937.21, marking its lowest closing level since July 1.

The broader Topix index, meanwhile, lost 32.86 points, or 1.76 percent, to finish at 1,835.94.

Technology issues here came under pressure following a report saying Apple Inc. no longer plans to increase production of its new iPhone compounded fears over a recession, brokers here said.

"Yesterday's news about Apple suspending its production increase caused the market to factor in a global recession," Takashi Nakamura, senior strategist at Tokai Tokyo Research Institute, was quoted as saying.

"Even if the economy is expected to improve in Japan, overseas trends will make it difficult for investors to buy Japanese stocks alone," he said.

The tech-heavy Nasdaq's overnight tumble also saw Tesla lose ground, underscoring market participants' woes, strategists here said.

Sentiment was also hurt by U.S. weekly jobless claims data released the previous day being below median economists' expectations and hence raising the likelihood the Fed would continue ahead with its aggressive monetary policy to tame inflation.

Higher interest rates mean increased borrowing costs for businesses and households, analysts here highlighted, and the fears of a global economic slowdown as a result are leading to increased volatility in currency and stock markets, they explained.

By the close of play, transportation equipment, electric appliance, and machinery issues comprised those that declined the most, and falling issues outpaced rising ones by 1,551 to 248 on the Prime Market, while 32 ended the day unchanged.

Heavily-weighted issues dragged, including Fast Retailing, operator of the Uniqlo chain, slipping 3.6 percent.

Technology issues followed their U.S. peers lower, with Screen Holdings losing 3.3 percent, while Nikkei heavyweight Tokyo Electron weighed on the broader market losing 3.5 percent.

Nidec, meanwhile, fell 5.6 percent, while TDK ended 2.0 percent lower by the close.

Automakers also lost ground, with Mazda Motor Corp. plunging 8.2 percent, while Nissan and Mitsubishi also reversed into negative territory by the close.

On the Prime Market on Friday, 1,520.29 million shares changed hands, rising from Thursday's volume of 1,403.61 million shares.

The turnover on the final trading day of the week came to 3,858.65 billion yen (26.74 billion U.S. dollars). Enditem

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