Fears about the strength of the global economic recovery shadowed world markets today despite optimistic noises from G7 finance ministers.
Japanese shares fell sharply for the fourth straight session on economic fears while worries about Wall Street weighed on the dollar and boosted US bonds.
European shares opened higher, correcting a steep decline on Friday that took shares to levels seen shortly after the September 11th attacks on New York and Washington.
US stocks ended a touch lower Friday, lifted from sharper declines by late bargain hunting. They were hit by a report showing consumer sentiment fell in early June, renewing fears that the economic rebound was losing steam.
Finance ministers from the Group of Seven industrial nations, meeting in Halifax, Nova Scotia, were coolly confident about the state of their economies.
"Growth in out economies has strengthened and should continue to consolidate throughout the year," they said in a communique Saturday.
In Tokyo today, the Nikkei average tumbled 2.35 per cent to close at a three-month low of 10,664.11 and the capital-weighted TOPIX shed 2.71 per cent to 1.025.70.
Japan has been one of the few high-flying major bourses this year as US and European shares have crumbled, but recent worries about sustained recovery have undermined gains.
European shares fared better, opening with a modest bounce after a five percent shellacking Friday.
The FTSE Eurotop 300 index was up 0.6 per cent at 1,070 points. Last week, it sank to levels last seen in late September after four weeks of losses.