Tokyo stocks fell for a third straight session Monday, with the key Nikkei average briefly dipping below the 8,000 line amid a banking sector selloff.

This selloff was triggered by the government's weekend announcement that it would bail out Resona Bank.

The 225-issue Nikkei average dropped 78.16 points, or 0.96 percent, to close at 8,039.13, having briefly dipped below 8,000 for the first time since May 6.