Tokyo stocks tumbled Friday, with the Nikkei index plummeting 2.98 percent to its lowest level in more than three months, as a global rout sparked by a slump in the Chinese market, sent US shares lower, denting investor confidence here.

The 225-issue Nikkei Stock Average lost 597.69 points from Thursday to close the week at 19,435.83, marking its lowest closing level since May 8, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 50.87 points, or 3.13 percent, to finish at 1,573.01.

Local brokers here noted that stocks were pressured from the opening bell with all industry groups on the main section eventually closing lower, led by real estate and insurance issues, while China-linked issues also took a hit on the last trading day of the week.

Traders here also said that exporters came under pressure as in times of market turmoil, investors tend to switch out of riskier assets like stocks and into safe havens like the yen, which pushes its price up against its competitors, which negatively impacts exporters.

Some analysts mentioned that overall market confidence was low and this was owing to issues in China compounded by the latest macroeconomic statistics here, including a shrinking economy and worse-than-expected trade deficit data, as was announced by the government here this week, and was adding to a lack of confidence in earnings as well as the economy.

"The environment in surrounding markets has changed with the Chinese economy slowing and commodity prices plunging. The confusion in the overseas markets shows that investors are unable to have confidence in either the economy or corporate earnings," said Ryuta Otsuka, a strategist at Toyo Securities Co..

But the sell-off, traders said, was triggered by investor sentiment being damaged by worse-than-expected Chinese manufacturing industry purchasing managers' index for August, released Friday by private firms, which created a dour market mood here.

But while some economists like Akio Yoshino, chief economist in Tokyo at Amundi Japan Ltd. said that more cuts to the global growth forecast were likely forthwith and that fundamentals in Asian markets don't look good, others, like Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co., speculated that Chinese authorities may roll out fresh economic stimulus over the weekend, which could help Tokyo stocks recover on Monday.

Horiuchi added that the market was now eagerly waiting news from China to dictate market moves, in lieu of the US Federal Reserve making announcements about its planned interest rate hike and key US jobs data due out in a fortnight.

In share trading, China-linked issues lost ground, with Alps Electric falling 7 percent to close at 3,560 yen, while Fujikura relinquished 6.7 percent to end at 629 yen. Robotics firm Fanuc and construction firm Komatsu, a construction machinery maker, were also among Friday's notable decliners.

Exporters were also among the losing issues as they rely on a weak yen to boost their competitiveness in overseas markets and to ensure profits are augmented on favorable exchange rates when repatriated. Hence, TDK lost 4 percent to 7,620 yen, while Daikin Industries fell 3.2 percent to close at 7,519 yen.

Along with exporters, financial issues also weighed on the market, with top lender Mitsubishi UFJ down 4.1 percent and Sumitomo Mitsui losing 4.8 percent.

Utilities were pressured by crude oil futures rebounding in New York and Kansai Electric Power fell 5.9 percent to 1,537 yen, while Tokyo Electric Power lost 3.6 percent to close the week at 842 yen.

Trading volume on Friday rose to 2.76 billion shares on the Tokyo Exchange's First Section, up from Thursday's volume of 2.11 billion shares, with declining issues trouncing advancing ones by 1,854 to 33.