Tokyo's benchmark stock index fell sharply on Tuesday after media reports of the possible visit by the US House Speaker to Taiwan. Some investors were worried that tensions between Washington and Beijing may be about to increase.

The Nikkei Average ended the day at 27,594. That's down 398 points or 1.4 percent from Monday's close.
Investors unloaded shares in many sectors.
Recent worries over a US economic slowdown are also being blamed.

Meanwhile, the yen rose against the dollar following the media reports. The greenback is trading in the 130-yen range in Tokyo on Tuesday. That's a level not seen in about 2 months. The US currency briefly weakened more than 2 yen from Monday.
The Japanese currency reset a 24-year low in mid-July when it hit the 139 mark to the dollar.

But some investors have been selling dollars and buying back the yen since last week out of concern that the US economy may be about to slow down.