Japan stocks take largest dive since Black Monday of 1987

Nikkei average tumbles to lowest close since January; Taiex and Kospi also skid

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Chip-related stocks took a beating in Tokyo on Aug. 2, while financial stocks also felt some pain. (Photo by Yutaka Miyaguchi)

LISA KIM, Nikkei staff writer

TOKYO -- Japan's benchmark Nikkei Stock Average on Friday recorded the second-biggest daily drop in its history, as stocks extended losses following a sell-off in New York overnight.

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