Tokyo - Japan's benchmark Nikkei 225 Stock Average plunged more than 4 per cent Tuesday on fears of a global credit crunch caused by the US subprime home-loan crisis. The Nikkei index lost 587.63 points, or 4.41 per cent, to sink below the 13,000 level for the first time since October 2005 at 12,738.31.
The broader Topix index of all first-section issues also fell 51.52 points, or 3.98 per cent, to 1,242.22.
Following Tuesday morning's Tokyo stock market, Japan's economic and fiscal policy minister said the government would continue to closely monitor the stock prices.
Minister Hiroko Ota said at a press conference that the losses at the Tokyo market were affected by the US subprime mortgage crisis.
But the government would not take any immediate action, Ota said.
Japan's central bank, in the meantime, was expected to hold the key short-term interest rate unchanged at 0.5 per cent at its policy meeting to end later in the day.
On currency markets at 9 am (0000 GMT), the dollar traded at 105.62-67 yen, down from Monday's 5 pm quote of 106.33-35 yen.
The euro was quoted at 1.4417-22 dollars, down from Monday's 5 pm quote of 1.4537-39 dollars, and at 152.30-35 yen, down from 154.58-62 yen.
