TOKYO (Kyodo) -- Japan's key stock indexes plunged over 2 percent Monday on selling fueled by fears over the adverse effect on companies after U.S. President Donald Trump ordered tariffs on China, Canada and Mexico.

Automakers were especially hard hit as they have production bases in countries neighboring the United States, with concerns over the escalation of tariff measures also dampening market sentiment, brokers said.

The 225-issue Nikkei Stock Average ended down 1,052.40 points, or 2.66 percent, from Friday at 38,520.09. The broader Topix index finished 68.27 points, or 2.45 percent, lower at 2,720.39.

On the top-tier Prime Market, decliners were led by transportation equipment, precision instrument, and pulp and paper issues.

The U.S. dollar climbed to the upper 155 yen range in Tokyo on views that tariffs could fuel inflation in the United States and cause the Federal Reserve to keep interest rates elevated for longer, leaving the Japan-U.S. interest rate differential wide.

At 5 p.m., the dollar fetched 155.61-64 yen, compared with 155.15-25 yen in New York and 154.65-66 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.0224-0226 and 159.11-15 yen against $1.0353-0363 and 160.78-88 yen in New York and $1.0403-0405 and 160.89-93 yen in Tokyo late Friday afternoon.

The yield on the benchmark 10-year Japanese government bond ended at 1.245 percent, up 0.005 percentage point from Friday's close. The debt was sold tracking a rise in long-term U.S. Treasury yields late last week on the Trump administration's tariff plans.

Stocks tumbled throughout the day, with the Nikkei index briefly losing over 1,100 points, as concerns grew with U.S. tariffs expected to go into effect from Tuesday. Falling U.S. futures also weighed on sentiment.

On Saturday, Trump signed an order enacting tariffs of 25 percent on imports from Canada and Mexico and an additional 10 percent on goods from China.

"The tariffs raised prospects of Japanese auto products from Mexico being more expensive in the United States, and sales taking a hit," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

Canada's announcement of retaliatory measures and Mexico's vow to also respond were unexpected developments that fueled market uncertainty over the global economy and led to wider risk-off selling, brokers said.

"At the moment investors were taking the view that the tariffs are leading to a worse scenario in which a trade war could spread," Ichikawa said.