2016.11.0902:20:00UTC+00Nikkei Slides to Five-Week Trough as Trump Front runner in White House Race

Japan's Nikkei share average slumped 2.2% at 16, 788.90 in midday trading as financial markets were rattled by the early exit polls showing Republican presidential candidate Donald Trump securing a lead over Democrat nominee Hillary Clinton in the U.S. presidential election battle.

The index fell as as much as 3.1% to a five-week low of 16, 646. 04 earlier in the session, hitting its lowest level since October 4. The Nikkei volatility index rose 19% to 26.89, its highest level since July 29.

Traders cited the choppy currency market along with the U.S. dollar falling almost 2.5% at 102.430 yen after jumping 105. 480 yen earlier in trade causing the rapid fluctuations in the stock market. The shifting 'risk on' and 'risk off' stances of investors that has affected the yen throughout the election has also hit the financial sector, analysts said.

All of 33 Topix's subsectors fell into negative territory, with financial and exports leading the declines. The topix lost 2.3% to 1, 332.64 while the JPX-Nikkei Index 400 lost 2.3% to 11, 942.64.