Japan's key Nikkei 225 Stock Average fell below 8,000 to end Wednesday trading as the market sentiment was dampened by concerns over the US and European financial sectors, reported dpa.
The benchmark Nikkei 225 index lost 164.15 points, or 2.04 per cent, to close at 7,901.64.
The broader Topix index of all First Section issues was down 17.88 points, or 2.22 per cent, to 787.15.
On currency markets at midday (0300 GMT), the dollar traded at 90.00-05 yen, down from Tuesday's 5 pm quote of 90.41-43 yen.
The euro was quoted at 1.2970-75 dollars, up from late Tuesday's quote of 1.2945-47 dollars, and at 116.78-83 yen, down from 117.04-08 yen.