TOKYO, Sept. 30 (Xinhua) -- Japan's benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, plunged more than 4 percent on Monday after former Defense Minister Shigeru Ishiba was elected head of the ruling Liberal Democratic Party last Friday.

The sharp decline saw the index dive more than 4.6 percent at one point as Ishiba has shown a positive stance towards increasing taxes on financial income and corporate taxes, raising concerns about his economic policies in the stock market and leading to a wave of sell-offs.

The strengthening of the yen against the dollar in the foreign exchange market also prompted broad-based selling, particularly in export-related stocks.

Ishiba's victory at the election came after Friday's market close, which saw the Nikkei index jumping 2.32 percent during the day as the market betted on Economic Security Minister Sanae Takaichi to win, expecting her to adopt pro-growth economic policies if chosen. Enditem

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