Nikkei suffers critical drop

There's been another big drop in share prices in Tokyo, after the collapse of the leading foodstuffs firm, Toshoku, renewed concerns over the state of the Japanese economy.

The Nikkei average was down by more than five per cent , or 800 points, bringing it close to 15,000 points.

The BBC Economics Correspondent says this is seen as a danger level for the Japanese banks, which hold shares as security for the loans they grant.

With the banks trying to reduce bad loans, Toshuku received no help from them when it announced on Thursday it would file for bankruptcy.

Our correspondent says that this, in turn, puts pressure on companies, exposing the nature of the viscious circle which appears to be dragging the Japanese economy down.

From the newsroom of the BBC World Service