Around the World's Markets: Tokyo

CONCERN THAT a weakening dollar and a strengthening yen would scupper an export-led recovery resulted in the Nikkei's largest fall in three weeks. By the close the Index had dropped 2 per cent to 14,697.

Sony Corp, Fuji and Canon, who increasingly rely on buoyancy in the US economy to offset sluggish domestic sales, accounted for an eighth of the index's decline.

"There is a widening perception that a US slowdown is only a matter of time. The stronger yen is certainly putting pressure on exporter's profits," one dealer said.