Tokyo's Nikkei average fell for a seventh day to close at a 19-year low in a broad-based decline led by banks such as Sumitomo Mitsui Banking after a plunge in global stock markets.
Fresh data from the United States showing its manufacturing sector starting to splutter deepened fears that the locomotive of the world economy was running out of steam.
Also, a lack of action on the domestic policy front makes it appear unlikely there will be any near-term strong turnaround in the Tokyo stock market, traders said.
Communications and banks were among the hardest-hit sectors, with Sumitomo Mitsui slumping 7.55 per cent to 514 yen and top wireless carrier NTT DoCoMo falling 4.92 per cent to 232,000 yen.
"It's a kind of survival game. Sellers are trying to offload stocks before others and their next target is likely to be 8,500 (for the Nikkei)," said Hiroyuki Nakai, manager of investment research at Tokai Tokyo Securities.
The Nikkei average finished down 141.95 points or 1.54 per cent at 9,075.09, the lowest close since August 17th, 1983.
It earlier broke through the 9,000 support level to as low as 8,995.20.
