Japan's Nikkei dives a further 5%

Japan's Nikkei index dived a further 5% on Thursday to hit a five-week low, amid predictions of a bigger correction from some analysts.

The fall means the Nikkei has lost 8.3% since reaching a five-and-a-half-year high just a week ago.

Trading in Tokyo has been volatile amid concerns over global growth and the future of US stimulus measures.

Japanese government officials have played down the significance of the falls, suggesting they are "temporary".

"Share prices appear to have been undergoing temporary adjustment over the past week," Japan's chief cabinet secretary, Yoshihide Suga, told reporters.

"A rise in share prices over the past month has been extremely rapid... In that regard, it would be unnatural if adjustment did not occur."

Other traders suggested investors were still on edge following a 7% fall in stocks in a single day last week, as well as concerns that the yen is rising again, potentially hurting Japanese exporters.

Massive stimulus measures introduced by the Japanese government initially caused big falls in the yen against other currencies.

There is also some uncertainty over how long the US Federal Reserve will continue to pump liquidity into the US market.

Michael Hewson, an analyst at CMC Markets in London, told the BBC that investors were nervous that the Fed might begin winding down economic stimulus measures soon.

"The economic fundamentals don't really justify the market rally," he said. "We have to get used to a lot more volatility, and possibly a big correction."

He suggested the Nikkei could fall as low as 12,500 points, down from the 13,589 it closed at on Thursday.