Japanese stock market falls sharply

Japanese stocks fell 4 per cent today as the Nikkei hit a nearly six-week closing low.

The benchmark Nikkei shed 610.84 points, or 4.5 per cent, to end at 12,992.18, its lowest close since January 23rd. The broader Topix ended down 53.13 points or 4 per cent at 1,271.15, also its lowest close since January 23rd.

Honda and other exporters were battered by a strong yen amid growing US recession worries.

Shares of Japanese consumer lender Takefuji sank 6.6 per cent to 2,490 yen after it said it may post a loss of up to 30 billion yen ($290 million) on a structured finance transaction.

Credit worries battered other financial stocks, but the main market mover was the yen's surge against the dollar, which caused Tokyo to sharply under perform other Asian markets.

The dollar extended its slide to below 103 yen, hitting a three-year low as recession talk sparked a sell-off in Asian stocks and an unwinding of carry trades. At 6.24am it stood at 102.89 yen.