Tokyo - Asian markets plummeted to new lows Monday, with Japan's key Nikkei index leading the plunge, as investors across the region stepped up panic-selling on concerns that tumbling share values would drag economies into recession.

Stocks in Tokyo nosedived, as the benchmark Nikkei 225 tumbled 486.18 points, or 6.36 per cent, to close at 7,162.9, the lowest level in 26 years. The market crisis has shaved off half the value off the Nikkei this year.

The broader Topix index of all first-section issues also lost 59.65 points, or 7.4 per cent, to 746.46.

The Bank of Japan injected 600 billion yen (6.37 billion dollars) into the money markets Monday to ease a credit crunch as stocks prices plunged.

Finance Minister Shoichi Nakagawa said he was "very much worried" about the fall in stock prices and announced a government plan to take emergency measures to stabilize stocks, while the yen hit a 13-year high against the dollar, crushing the overseas earnings prospects of Japanese exporters.

Other Asian markets were similarly shaken, with South Korea's Kospi index bucking the trend, trading up 0.82 per cent at 946.45, as the country's central bank announced a record rate cut of 0.75 percentage points to 4.25 per cent.

Hong Kong's Hang Seng Index plummeted more than 4 per cent Monday morning, leaving the blue-chip index hovering just above 12,000.

The index lost 532.11 points, or 4.22 per cent, closing for lunch at 12,086.27.

The sell-off came after share prices initially crept up slightly in the opening minutes of trading before falling sharply back as more pessimism clouded the market amid fears of a global recession.

In mainland China, the Shanghai Composite Index was down 5.76 per cent to 1,733.69, while the SSE Component index lost 373.04 points, or 6.06 per cent, falling to 
5,785.92.

Across the Tawain strait, the Taiex fell 212.75 points, or 4.65 per cent, to close at 4,366.87 after Friday's drop on Wall Street and as the Taiwan government raised a cap on daily stock market fluctuations.

Smaller south-east Asian markets were hit equally hard with the Philippine Stock Exchange halting trading near the end of the trading day after share prices fell more than 
10 per cent.

Trading resumed 10 minutes later with the main index continuing to fall, closing 239.66 points, or 12.27 per cent, lower at 1,713.83.

In Bangkok, the Stock Exchange of Thailand index was down 6.96 per cent to 402.43, shedding 30.14 points, while Indonesia's Jakarta Composite index plunged 6.88 per cent to 1,159.2.

The Ho Chi Minh Stock index in Vietnam lost 15.83 points, or 4.59 per cent, to 329.28.

Singapore was closed for trading on Monday, as were Malaysia and New Zealand.

Indian markets slid by more than 6 per cent soon after opening, tracking drops on other Asian markets.

The benchmark 30-share Sensitive Index of the Bombay Stock Exchange dipped by more than 6 per cent to 8,051, its lowest point in three years, soon after opening. It recovered marginally and was trading at 8,279.27, about 4.85 per cent lower, by mid-morning.

The broader 50-share Nifty index of the National Stock Exchange also dipped by 6.39 per cent and was trading at 2,418.9.

Australia escaped Monday's Asian tumble relatively unscathed despite slides as fears of a worldwide recession grew.

The ASX 200 lost 60 points, or 1.5 per cent, to 3,809.

Losses were stemmed by rising values in the mining sector. Market leader BHP Billiton was up 1.5 per cent as bargain hunters moved on a counter considered oversold. Gold miners also did better.

The local currency was trading at a five-year low of 61 US cents. It has lost 37 per cent in value against the US dollar in three months. (dpa)