TOKYO (Reuters) - Japanese stocks sank across the board on Friday, with automakers such as Toyota Motor Corp taking a beating after a plan to bail out U.S. car makers failed in the Senate. The dollar dived below 89.00 yen, a 13-year low, on the bailout news. That dealt an extra blow to Canon Inc and other exporters, as a stronger yen curbs their overseas profits when they are repatriated. "It's a big shock to the stock and foreign exchange markets as the news gives you the impression that they may need to go into Chapter 11, which would be the worst-case scenario," said Susumu Kato, chief economist at Calyon Capital Markets Japan. "As for the impact on the world economy, everyone has a common problem with falling consumption as well as the sluggish automobile sector. If the Big Three automakers actually go bankrupt, the impact will be very grave." Republican-brokered talks faltered, leaving the chamber at a dead end on an approach for extending $14 billion in loans to avert a threatened collapse of one or more automakers, Senate Majority Leader Harry Reid said in remarks on the floor. "It's over with," Reid said. The benchmark Nikkei was down 6.6 percent or 578.31 points at 8,142.24. It had already fallen 1.3 percent ahead of the news. The broader Topix shed 5.3 percent to 804.02. The dollar fell to 89.85 yen on trading platform EBS, the lowest since 1995. Shares in Toyota, Nissan Motor Co and other Japanese carmaker's shares extended falls after the news. Toyota, which ended the morning down 2.4 percent, was slid 11.1 percent to 2,730 yen. Honda Motor Co lost 14.1 percent and Nissan tumbled 11.8 percent. Exporters fell broadly, with Canon down 6.4 percent at 2,575 yen and Sony Corp slid 6.5 percent to 1,849 yen. (Reporting by Aiko Hayashi; Additional reporting by the Tokyo newsroom; Editing by Michael Watson)

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