Japan's Nikkei average ended down 0.7 per cent this morning, trimming its losses but marking a four-month closing low as banking shares fell, although investors picked up beaten-down exporters such as Sony.
Although the benchmark briefly turned positive in afternoon trade, it hovered just short of a 26-year low amid worries about the U.S. financial system that sent US stocks to 12-year lows yesterdday, with insurer AIG posting a record loss.
The benchmark Nikkei declined 50.43 points to 7,229.72, the lowest finish since October 27th.
It slid as low as 7,088.47 in the morning - a level not seen since the 26-year low of 6,994.90 recorded late last October.
The broader Topix slipped 1.1 per cent to 726.80, its lowest close since December 1983.
Reuters
