Japanese shares fell in early trade Thursday, weighed down by renewed worries about the potential impact of the eurozone debt crisis on other economies.
The Nikkei index at the Tokyo Stock Exchange fell 0.67 percent or 57.05 points to 8,406.11 in early trade. The Topix index of all first section shares lost 0.85 percent or 6.19 points to 717.92.
"European banks will likely have to continue reducing risky assets," said Kenichi Hirano, operating officer at Tachibana Securities.
"Asian economies, seen as the engine of global growth, may be damaged... as (European banks) pull their funds out of emerging economies," he said.
Investor sentiment was depressed after Fitch Ratings agency warned that US banks could be hit hard by the eurozone crisis.
"US banks could be greatly affected if contagion continues to spread beyond the stressed European markets" of Greece, Ireland, Portugal and Spain, Fitch said.
The study triggered a fall in US banking shares.
The falls in Tokyo came after the Dow Jones Industrial Average tumbled 190.57 points (1.58 percent) to finish at 11,905.59.
The broad-based S&P 500 fell 20.90 points (1.66 percent) to 1,236.91, while the tech-heavy Nasdaq Composite lost 46.59 points (1.73 percent) to 2,639.61.
The euro fetched $1.3447 and 103.60 yen in early Asian trade, little changed from $1.3451 and 103.70 yen in New York Wednesday.
The dollar was also almost unchanged at 77.05 yen.