Tokyo  - Japan's key Nikkei 225 Stock Average fell below 8,000 to end morning trading Tuesday as concerns over the European economy spread.

The Nikkei index dropped 257.83 points, or 3.12 per cent, to 7,999.02.

The broader Topix index of all First Section issues was down 19.67 points, or 2.41 per cent, to 798.06.

On the currency markets at 9 am (0000 GMT), the dollar traded at 90.63-66 yen, up from Monday's 5 pm quote of 90.62-63 yen.

The euro was quoted at 1.3090-95 dollars, down form Monday's 5 pm quote of 1.3292-95 dollars, and at 118.67-72 yen, down from 120.46-50 yen. (dpa)