Tokyo  - Asian markets plummeted to new lows Monday, with trading halted at several stock exchanges, 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.

Prime Minister Taro Aso ordered the government and ruling parties to immediately implement measures to stabilize the stock market.

"Stock prices greatly influence the real economy," Aso said at a press conference. "In that sense, we have to consider various measures and implement them."

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.

"We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability," said a statement released by the G7, which consists of Britain, Canada, France, Germany, Italy, Japan and the United States.

Other Asian markets were similarly shaken, with only 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 stocks went into virtual freefall, plunging nearly 13 per cent in their biggest one-day loss for 11 years.

The Hang Seng Index was hit by an afternoon selling frenzy that left it down 1,602.54 points, or 12.7 per cent, at 11,015.84 points. Turnover was 56.8 billion Hong Kong dollars (7.32 billion US dollars). The index has lost 27 per cent in the past five days.

In mainland China, the Shanghai Composite Index dropped 116.27 points, or 6.32 per cent, to close at 1,723.35. The Shenzhen Component Index plunged 424.14 points, or
6.89 per cent to close at 5,734.81.

Across the Taiwan strait, the Taiex fell 212.75 points, or 4.65 per cent, to close at 4,366.87 as the 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.

In Bangkok, the Stock Exchange of Thailand index was down 10.5 per cent, prompting a circuit break at 4 pm, as investors continued to dump equities in panic selling.

Indonesian stocks plunged by 6.3 per cent, in line with sharp falls across Asia on concerns that economic stimulus measures will fail to stop a global slowdown.

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 6 per cent to 8,051 its lowest point in three years, soon after opening. It recovered marginally and was trading at 8,186.25, about 5.92 per cent lower, by mid-day.

The broader 50-share Nifty index of the National Stock Exchange also dipped by 6.96 per cent and was trading at 2,404.05.

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, as losses were stemmed by rising values in the mining sector.

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)