Japanese shares post biggest dive since 9-11

TOKYO (AFP) - Japanese share prices have posted their biggest fall since the September 11, 2001 terrorist attacks, plunging more than four percent on concerns over the US economy and a scandal touching the central bank chief, dealers said.

The market tumbled before the closing bell into a selling frenzy first set off by another fall on Wall Street overnight due to anxiety about the outlook for US inflation and so interest rates, they said.

With investors on the defensive from the opening, sentiment was further hit by Bank of Japan governor Toshihiko Fukui's surprise admission that he had invested in the fund of Yoshiaki Murakami, who was arrested last week on charges of insider trading.

The Tokyo Stock Exchange's Nikkei-225 index plunged 614.41 points or 4.14 percent to 14,218.60, the lowest closing level since November 16, 2005.