Asia-Pacific markets sank on Monday as investors focused on growing concerns about a global recession and the lengthening list of banks falling victim to the credit crisis, leaving the passing of the US government’s bail-out plan to fade into the background.

The Nikkei 225 dropped to the lowest in four and a half years, losing 4.3 per cent to 10,473.09, while the broader Topix sank to its lowest since December 2003, closing below the 1,000-mark, with a 4.7 per cent drop to 999.05.