As the 225-issue Nikkei average briefly tumbled below 8,000 on Monday before finishing at a fresh 20-year low, top Cabinet members began talking about government plans to counter the seemingly relentless fall in domestic share prices.
Economists, however, say alternatives to measures already announced -- structural and tax reforms, and the Bank of Japan's injection of money into banks -- are limited for now.
Amid growing fears that a looming military attack in Iraq may hurt the global economy, the benchmark Nikkei closed Monday down sharply at 8,042.26. The drop shocked domestic companies, insurers and banks, which hold a large number of one another's shares.