TOKYO, Oct. 4 (Xinhua) -- Tokyo stocks extended losses Tuesday, with the benchmark Nikkei stock index losing 1.05 percent as Greece's unresolved debt issue continues to unsettle markets in the eurozone and impact global economic growth and investor sentiment. Local brokers said that the likelihood of Greece defaulting on its debt and sparking another wide-reaching financial crisis was in the offing, compounded by news from Athens that the debt- plagued country will miss its deficit targets. Analysts said that markets were bracing themselves for what they describes as a "disorderly default," and spoke of the impact this will have on the global economy. "If we don't get a resolution in Greece, we may see a disorderly default," said Koichi Kurose, chief economist in Tokyo at Resona Bank Ltd. "The politicians are all over the place. Stocks are pricing in a scenario where the financial crisis spreads in Europe, the U.S. economy worsens and it leads to a deterioration in the global economy," Kurose said. An expansion of the European Financial Stability Fund has been rejected by Germany and other smaller economies have remained muted on the subject, adding to investor woes and on a domestic front issues that are inextricably linked to the crisis-hit eurozone came under increased selling pressure. Some analysts said that the efforts of European leaders to safeguard the likes of Spain and Italy from a Greek-like scenario had gone someway towards dampening fears, but concerns that financial institutions will become embroiled in the credit crisis are rife, they said. The 225-issue Nikkei Stock Average dropped 89.36 points from Monday to 8,456.12, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange lost 10.93 points, or 1. 46 percent, to finish at 736.18. Exporters were again pressured by a weak euro and Toyota Motor Corp., the world's largest automaker, fell 2.5 percent to 2,568 yen, while smaller rival Honda Motor Co. lost 2.8 percent to finish at 2,202 yen. Consumer electronics giant Sony retreated 0.7 percent to 1,429 yen, Olympus slumped 1.5 percent to 2,272 yen and Ricoh and TDK dropped 1.6 percent and 3.9 percent to 614 yen and 2,546 yen respectively. Trading houses lost ground on concerns the global economy is slowing down and commodity and energy-related issues dropped on falling metal prices. Mitsubishi Corp. plunged 5.7 percent to 1,429 yen and fellow trading house Mitsui & Co. lost 2.9 percent to 1,043 yen. JFE Holdings relinquished 3.3 percent to 1,461 yen and Sumitomo Metal Mining lost 2.6 percent to 969 yen -- both adversely affected by falling cooper and crude oil prices. But high street consumer loan company Promise gained 1.8 percent to 773 yen, bucking the downward trend, following Sumitomo Mitsui Financial Group saying it will make the firm into a wholly owned subsidiary. Nikon also closed in positive territory on Tuesday, climbing 3. 4 percent to 1,845 yen, on hopes for a newly developed single- reflex camera. Trading volume on Tuesday rose to 2.07 billion shares on the Tokyo Exchange's First Section, up from Monday's volume of 1.92 billion shares, with declining issues outnumbering advancing ones by 1,287 to 299.

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