The main indices followed the US markets where there were big falls on Wall Street on Friday.

Tokyo's Nikkei index closed down 4.5%, or 610.84 points at 12,992.18, its lowest level for six weeks.

The decline of the dollar against the yen also worried traders. Shares of big exporting companies such as Toyota and Honda suffered large falls.

The weakening dollar fell to its lowest level against the yen for three years, making exports more expensive. In early trading in Tokyo it was as low as 102.90 yen. It later Golf: Els wins Honda Classic ...
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"What you have seen in Japan reflects in part the strength of the currency. When the currency goes up sharply in an exporting nation, that is pretty bad for the shares," Charlie Morris from HSBC Investments told the BBC.

Shares in car maker Honda fell 5.8% to 3,070 yen and rival Toyota's shares were 3.3% down at 5,560 yen.

Exports to the United States are important to Japan's largest corporations.

"Investor fears of a US recession have strengthened. There is even a growing view that the US economy has already entered into a recession," said Ryohei Muramatsu of Commerzbank in Tokyo.

Hong Kong's Hang Seng index was down 2.95%, or 717.17 points at 23,614.5.

(BBC)

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