Japan's Nikkei average fell 3.3 per cent to a six-week low today.
The benchmark Nikkei average ended down 432.62 points at 12,782.80. The index fell 6 per cent for the week.
Investors dumped blue-chip exporters such as Honda Motor on a stronger yen and fears of a US recession, while silicon wafer maker Sumco tumbled more than 10 per cent after predicting weaker profits.
Banks such as Sumitomo Mitsui Financial Group took a beating after US mortgage lender Thornburg Mortgage said it failed to meet a $28 million margin call, the latest setback in the global credit crisis.
Worries about a US recession were heightened by a fresh batch of data including lacklustre retail sales and a report showing mortgage foreclosures at a record high in late 2007.
During the afternoon session, the Japanese government nominated deputy central bank governor Toshiro Muto as the next head of the Bank of Japan, raising the prospect of a showdown with the opposition.
But the market mostly shrugged off the BOJ nomination, including chances of a policy vacuum if agreement is not reached before current governor Toshihiko Fukui retires on March 19th.