Japan stocks down 5.3 percent after Europe, US sell-off

TOKYO (AP) — Japan's main stock index dived more than 5 percent Friday, leading other Asian markets lower, after a sell-off in banking shares roiled investors in Europe and the U.S.

Investors recognize that prices rose too high during several years of artificial support from the ultra-easy monetary policies of central banks that were trying to foster economic recovery following the 2009 global recession.

"The sell down of global banking stocks continued overnight, slashing share prices in Europe and trampling US indices before a late session comeback," said Michael McCarthy, chief strategist at CMC Markets in Sydney.

Fed Chair Janet Yellen voiced confidence in the U.S. economy in testimony to Congress on Thursday, but acknowledged risks, saying it was too early to tell whether they are severe enough to alter the central bank's interest rate policies.