Tokyo stocks endured a session of heavy losses as confidence was battered by the previous day’s sell-off in Shanghai and New York. Although the afternoon session saw some recovery for the morning’s worst-afflicted shares, the Nikkei ended trading more than 500 points down.

The rising yen, which surged against the dollar and euro on investor fears that the yen carry trade may be about to unwind, stoked concerns that Japanese exporters may lose the advantage they have gained from the currency’s recent weakness.