Tokyo stocks closed at a more than two-year low on Tuesday on rekindled worries over eurozone debt.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange closed down 2.21 percent, falling 193.89 points to 8,590.57. The broader Topix index of all first-section issues was down 14.62 points or 1.93 percent at 741.20.
The Nikkei's plunge came as Asian bourses followed falls in European shares on Monday with banks hit particularly hard by acute tension over the risk of recession in leading economies and over eurozone debt.
The yen rose to nearly a six-month high versus the euro in Tokyo trade Tuesday, hitting sentiment towards exporters exposed to the eurozone.
A strong yen erodes the repatriated profits of Japan's exporters and makes it harder for goods produced domestically to be cost competitive. - Sapa-AFP