Japan's Nikkei stock index closed at the lowest level in more than 26 years on Monday as fears deepened about the health of Asia's biggest economy.
Investors were rattled by news that Japan logged its biggest ever current account deficit in January, the first month in the red in 13 years, as exports collapsed because of the global economic downturn.
The current account measures the balance between a country's exports and imports - a deficit means more imports.
The current account deficit was $US1.8 billion in January, the largest since comparable records began in 1985. In January 2008, it posted a $US18 billion surplus.
The Nikkei-225 index has fallen 20% so far in 2009, after a record 42% slump last year.
The benchmark index slipped 87.07 points, or 1.21%, on Monday to end at 7,086.03, the lowest closing level since 6 October 1982.
The broader Topix index of all first-section shares fell 10.86 points, or 1.51%, to a fresh 25-year low of 710.53.
Japan's export-dependent economy has been hammered by a worldwide drop in demand for its cars, high-tech goods and machinery, putting it on course for the worst recession since the Second World War. Its exports have since halved compared with a year ago.
The Nikkei is more than 80% off its all-time high of 38,915 reached in December 1989 before the country's asset bubble burst, ushering in the "lost decade" of stagnant growth, recessions and deflation.
Little change on NZ, Australian markets
In New Zealand, the benchmark index was down just 2 points, or 0.08%, to 2469 on turnover of $90 million.
Main stocks were mixed. Telecom was down 2 cents to $2.37, Fletcher Building also lost 2c to $5.13 but Contact Energy gained 10c to $5.65.
The Australian share market closed marginally higher, buoyed by the major miners amid a quiet session because of the Victorian public holiday.
The benchmark S&P/ASX200 index closed up nine points, or 0.29%, at 3,154.5, while the broader All Ordinaries index gained 10 points, or 0.32%, to 3,121.7.
