The stock market in Japan plunged into the red as investors pressed heavy sales after Wall Street suffered a severe setback following renewed concerns over widening financial losses. The Japanese market is witnessing a broad-based sell-off, with almost 215 of the 225 index components trading in negative territory.

The benchmark Nikkei opened nearly 125 points down at 8,802 and is currently trading at 8,645, down 280 points or 3.13% from its previous close.

Bank stocks are down with sharp losses on fears over rising bad loans. The strong yen has taken a toll on exporters and information technology stocks are trading weak as well.

Leading bank stocks Mitsubishi UFJ, Mizuho Financial Group and Sumitomo Mitsui are all down in negative territory with sharp losses. Auto majors Honda and Toyota are also down sharply.

Crude oil futures nose-dived nearly 9% in New York Mercantile Exchange yesterday. In currency market, Yen is trading around 98 against the U.S. dollar.

Most of the Asian markets had rebounded and ended with modest gains yesterday after languishing in the red for a better part of the session.

On Wall Street, stocks, led by those from the financial sector, had taken a severe beating yesterday after Bank of America reported higher credit loss provisions. Market sentiment was so badly hit that the Dow and Nasdaq went down by as much as 290 points and 65 points, respectively.

The bank exceeded expectations by reporting better-than-expected quarterly earnings but marked up provisions for credit loss by a whopping $ 7 billion to $13.4 billion in the first quarter.

In another development, Oracle announced it would acquire Sun Microsystems for $9.50 per share, a premium of over 40% to the stock's closing price last week.

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