Tokyo's Nikkei stock average fell to a fresh 19-year low this morning after several economic reports deepened fears of an economic slowdown in the United States.
The Nikkei was down 2.22 per cent at 9,017.29 at mid-session, after falling to a 19-year low of 8,969.26 and dipping below the key 9,000 level for the second time this week. The capital-weighted TOPIX index fell 2.09 per cent to 885.20.
Weak US retail sales in August heightened worries that consumers there were reining in their spending.
Japan's fragile economic recovery is largely dependent on the resilience of exports, especially to its biggest trade partner, the United States.
Nerves ahead of the first anniversary of the September 11th attacks, as well as fears of a US attack on Iraq, were also bruising sentiment, traders said.
Tech exporters were weak, with chip giant Toshiba Corp down 3.28 per cent and Sony Corp, the world's largest consumer electronics maker, off 2.23 per cent at 4,830. The tech-heavy Nasdaq Composite Index dropped 3.2 per cent yesterday on the cloudy outlook for the tech sector.