Tokyo - Japan's benchmark Nikkei 225 Stock Average on Friday lost nearly 10 per cent of its value, tumbling below 8,000 for the first time since May 2003, on indications the global financial crisis was beginning to hit the nation's exporters.

The Nikkei shed 811.9 points, or 9.6 per cent, to close at 7,649.08.

The broader Topix index of all first-section issues plunged 65.59 points, or 7.52 per cent, to 806.11.

The tumble was led by Sony Corp, whose shares plunged 14 per cent one day after the world's second-largest electronics company warned its profits this year were expected to drop nearly 60 per cent compared with last year.

Toyota Motor Corp also reported that its quarterly car sales fell for the first time in seven years, and exporters were worrying that slowing global demand and a stronger yen would severely impact their business.

Tokyo players dumped mainly export-oriented issues as the US dollar traded at the 95-yen level at one point in the afternoon session.

As the markets tumbled, the Bank of Japan conducted an emergency operation to ease short-term interbank lending by pumping 600 billion yen (6.04 billion dollars) into the money markets.

For the week, the Nikkei lost 12 per cent, and Topix also fell 9.86 per cent.

On currency markets at midday (0300 GMT), the dollar fell to 96.07-12 yen, down from Thursday's 5 pm quote of 97.68-70 yen.

The euro was quoted at 1.2782-87 dollars, down from Thursday's 5 pm quote of 1.2819-20 dollars, and at 122.85-90 yen, down from
125.22-26 yen. (dpa)