Tokyo  - Japan's key Nikkei 225 Stock Average hit a two-month low in morning trading Friday following the US market's overnight tumble that reflected heightened worries about inflation.

The Nikkei index plunged 307.2 points, or 2.22 per cent, to 13,515.12.

The broader Topix index of all first-section issues also fell 27.31 points, or 2.03 per cent, at 1,317.48.

The market sentiment was dampened after the US Dow Jones industrial average plunged to a 21-month low overnight due to a record rise in crude oil prices and Goldman Sachs' reports painted grim pictures for the financial sector and General Motors Corp.

On currency markets at 9 am (0000 GMT), the dollar was quoted at 106.82-87 yen, down from Thursday's 5 pm quote of 108.08-10 yen.

The euro was quoted at 1.5759-64 dollars, up from Thursday's 5 pm quote of 1.5646-47 dollars, and at 168.40-45 yen, down from 169.11-15 yen. (dpa)