Tokyo stocks plummeted Friday, with the Nikkei index ending at a one-month low, as concerns were raised following reports of a new COVID-19 variant in South Africa and its potential impact on the global economic recovery.

The 225-issue Nikkei Stock Average ended down 747.66 points, or 2.53 percent, from Thursday at 28,751.62, its lowest close since Oct. 25. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 40.71 points, or 2.01 percent, lower at 1,984.98.

A financial board in Tokyo shows Nikkei Stock Average closing down about 750 points, or 2.5 percent, at a one-month low on Nov. 26, 2021, following reports of a new COVID-19 variant in South Africa. (Kyodo). (Kyodo)

Every industry category lost ground, led by air transportation, real estate, and land transportation issues.

The U.S. dollar fell to the upper 114 yen range as the yen, seen as a safe-haven asset, was sought on worries over the new COVID-19 strain discovered in South Africa, dealers said.

Stocks were lower from the outset, extending losses throughout the morning. Selling accelerated in the afternoon, with the Nikkei benchmark tumbling nearly 900 points, or over 3 percent, to fall below the 29,000 mark amid the yen's advance and drop in some Asian markets.

"Reports of the new COVID-19 variant were a risk factor to the market as they heightened a sense of uncertainty and raised worries of a potential resurgence of infections," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

He added a slump in U.S. stock futures also weighed on the market.

It is feared the variant confirmed in South Africa may be highly contagious and the efficacy of COVID-19 vaccines against the strain is being questioned due to the nature of its mutations.

On Thursday, Britain said it would put six African countries, including South Africa, on its red list of travel restrictions as a countermeasure against the new variant's potential spread.

Maki Sawada, a strategist at Nomura Securities Co.'s investment content department, said that "as European countries implement lockdowns and restrict movements due to a surge in infections in the region, reports of a new variant served as an additional negative factor and deepened uncertainty over the global economic recovery."

On the First Section, declining issues outnumbered advancers 1,992 to 152, while 39 ended unchanged.

Air and land transportation issues were particularly hit on worries that the South African variant may reduce people's ability to travel.

ANA Holdings plummeted 111.5 yen, or 4.5 percent, to 2,361.0 yen, Japan Airlines tumbled 148 yen, or 6.5 percent, to 2,135 yen, while East Japan Railway was down 175 yen, or 2.4 percent, at 7,131 yen.

Shares for travel agency H.I.S. also met selling on the variant reports, plunging 163 yen, or 7.3 percent, to 2,080 yen.

Export-oriented shares were lower as the yen strengthened against the U.S. dollar. Electronic manufacturers Canon fell 54.0 yen, or 2.0 percent, to 2,591.0 yen, and Panasonic slumped 38.0 yen, or 2.8 percent, to 1,316.0 yen.

Automakers Mazda Motor dropped 28 yen, or 2.7 percent, to 1,022 yen, and Nissan Motor sagged 10.4 yen, or 1.6 percent, to 628.9 yen.

Trading volume on the main section rose to 1,302.90 million shares from Thursday's 959.84 million shares.

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