Tokyo: Japanese share prices sank to a four-year low in early trade today following heavy losses on Wall Street despite US Congress s approval of a huge financial rescue plan.

Dealers said it was uncertain how effective the Wall Street bailout package will be in stemming the financial turmoil, which is also deepening in Europe.

The Tokyo Stock Exchange's benchmark Nikkei-225 index fell 311.12 points, or 2.84 per cent, to 10,627.02 by mid-morning, levels last seen in October 2004. The broader Topix index of all first section shares dropped 33.02 points, or 3.15 per cent, to 1,014.94.

Investors remained concerned about the outlook for the global economy and financial markets, despite the green light from Congress for a 700-billion-dollar Wall Street bailout bill. Underscoring the worsening conditions in the world's largest economy, 159,000 US jobs were lost in September, official figures showed Friday.

The report, seen as one of the best indicators of economic momentum, showed a sharp rise in layoffs after 73,000 job losses in August.

There were also mounting concerns about problems in the European banking sector after Germany's fourth biggest bank, Hypo Real Estate, had to be rescued yesterday. The development came after the leaders of France, Germany, Britain and Italy pledged a more coordinated approach to prevent the meltdown in US financial markets from engulfing their own economies.

While the four powers put on a united front, there was no talk of a joint bail-out fund for European banks at a weekend meeting.
Source : PTI