Japan stocks slide on worries about US economy

A spate of dismal U.S. economic data also helped send the benchmark Nikkei 225 stock average skidding 216.62 points, or 1.94 percent, to 10,938.14 _ the index's first finish below the 11,000 level since May 18, 2005. The broader Topix index lost 2.69 percent to 1,047.97.

"The uncertainty about the U.S. bailout package is weighing heavily on Tokyo shares," said Noritsugu Hirakawa, strategist at Okasan Securities Co. in Tokyo. "It is clear the U.S. auto market, for one, is expected to stay sluggish."

Even big-name companies like Toyota Motor Corp., Nintendo Co. and Kyocera Corp. declined on worries about the seriousness of a protracted U.S. downturn, Hirakawa said.

Toyota sank 5.3 percent to 4,080 yen ($39), Nintendo declined 7 percent to 36,750 yen ($350) and Kyocera was down 3.4 percent at 7,660 yen ($73).

News about the proposed $700 billion bailout package, which passed the Senate but still needs approval from the House of Representatives, have been sending the Tokyo stock market on a roller-coaster ride all week.

Analysts say investors are already counting on the plan's passage, which could come Friday. But even then, pessimism is rampant about the overall U.S. economy, a key market for Japan's exporters.

U.S. data released Thursday that showed declining factory orders and a seven-year high in jobless claims stoked fears that Washington's rescue plan won't ward off a recession. In New York overnight, the Dow Jones industrials tumbled 348.22, or 3.22 percent, to 10,482.85.

In currencies, the dollar edged up to 105.26 yen from 104.97 yen late Thursday.