Japan's strides toward economic recovery, symbolized by buoyant Tokyo stocks, have become mired in quicksand as fears of a slowdown in China have broadened into wide-reaching concerns about global growth.
The 225-issue Nikkei Stock Average closed down nearly 3 percent Friday on the heels of steep sell-offs in Shanghai. Friday night brought further carnage to European and U.S. equity markets.
Some analysts now say the Nikkei could sink to the 16,000 level before the end of the year, vastly below earlier forecasts based on a firm outlook for Japan's economy and a weakening yen.