Asian markets are trading deep in the red on Wednesday. Japanese share prices are down more than three per cent after US stocks tumbled on worries about corporate earnings and the dollar fell below the key 100-yen level.
The Nikkei-225 index dropped 301.76 points, or 3.24 per cent, to 9,004.49, turning lower after three days of gains.
Stocks opened lower and extended their losses after the dollar slid against the yen, adding to worries about prospects for exporter earnings.
The Topix index of all first-section shares lost 31.95 points, or 3.34 per cent, to 924.69.
Wall Street's Dow Jones index sank 2.50 per cent on Tuesday after several US companies posted weaker-than-expected quarterly earnings.
With the global credit crunch showing signs of easing thanks to action by governments and central banks, investors are now turning their attention to the outlook for economic growth and corporate earnings.
The market was also spooked by media reports that Tokyo Motor is likely to suffer its first drop in annual sales in a decade in 2008. Another report said Toyota's operating profit could halve in the current financial year to March.
In other Asian markets, Hong Kong’s Hang Seng and South Korea’s Kospi were down over 1.7 per cent each.
Singapore shares were 2.02 per cent lower in early trade today on concerns corporate earnings
would be hit by the global slowdown, dealers said.
The main Straits Times Index was off 38.89 points at 1,881.90.