Japan's Nikkei stock average fell 4.2 percent on Monday, with Mitsubishi UFJ Financial Group (8306.T) and other banks hit hard and exporters falling on worries about the U.S. economy. Tokyo's index of banking shares .IBNKS.T slid 4.8 percent after the U.S. government said it would take a large stake in Citigroup Inc's (C.N) common shares, fanning fears it may increase its role in other major banks there. "Investors are very concerned about the U.S. financial sector, worried whether the U.S. government has enough money to save all institutions that need help," said Terushi Hirotama, head of trading at Ichiyoshi Securities. "That is hurting the stock market here, as well." The benchmark Nikkei .N225 slid 314.08 points to 7,254.34. Last week it fell as low as 7,155.16, within sight of a 26-year low just below 7,000. The broader Topix lost 3.4 percent to 731.37. Mitsubishi UFJ Financial Group, Japan's top lender, lost 6.8 percent to 423 yen and No. 3 bank Sumitomo Mitsui Financial Group (8316.T) fell 5.5 percent to 2,995 yen. Mizuho Financial Group (8411.T) dropped 4.8 percent to 179 yen. Shares of exporters fell as a stronger yen and the stumbling U.S. economy stoked worries about Japanese companies' profits abroad. The dollar was hovering around 97.34 yen on Monday, having retreated from a 3-1/2-month high of 98.72 yen hit last week. Toyota Motor Corp (7203.T), the world's biggest automaker, dropped 3.5 percent to 3,070 yen. Honda Motor Co (7267.T) slid 3.4 percent to 2,310 yen, while camera and office equipment maker Canon Inc (7751.T) lost 5.3 percent to 2,405 yen.

Source