Tokyo stocks tumbled on Wednesday as traders remained unimpressed by the Japanese Government's plan to revitalise the country's flagging economy.

There was disappointment that the economic stimulus package did not contain a cut in sales tax to boost consumer spending.

Nikkei average finished more than 2% lower, closing down 352.9 points at 14,075.06.

Traders were also awaiting more details of the plan, which will not be announced until Monday.

The centrepiece of the economic package involves ¥10 trillion ($82bn) in extra public works-related spending and ¥10 trillion ($33bn) in income tax cuts next year.

The widely expected package was compiled in a bid to prevent Japan's economy from shrinking for a third consecutive year and to fulfil Prime Minister Keizo Obuchi's pledge to engineer a recovery within two years.

"The news came when the market was pessimistic about timely action by the government," said Hiroshi Arano, general manager at Dai-Ichi Kangyo Asahi Asset Management.

"But the news is not helpful if it only means the government will mention its intention to cut taxes in the package and leave tax-cut debate until parliament in January," he added.