Tokyo - Tokyo stocks nosedived Monday, sending the benchmark Nikkei 225 Stock Average to its lowest level in 26 years.

The Nikkei tumbled 486.18 points, or 6.36 per cent, to 7,162.9. The index has lost half its value 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.

He also expressed concerns that the yen's strength against foreign currencies has been "excessive." It hit a 13-year high against the dollar.

Because of the stronger yen, major Japanese firms such as Sony Corp in Japan's export-oriented economy were expected this week to reduce corporate earnings projections for the year. A stronger yen reduces their overseas revenues.

On currency markets at midday (0300 GMT), the dollar traded at 94.02-07 yen, down from Friday's 5 pm quote of 95.14-17 yen.

The euro traded at 1.2562-67 dollars, down from Friday's 5 pm quote of 1.2665-68 dollars, and at 118.13-23 yen, down from 120.52-56 yen. (dpa)