Tokyo stocks fell sharply Wednesday, with the benchmark Nikkei stock index reversing yesterday's giant to close down 1.14 percent at a 29-month low, as renewed fears about the fiscal health of the eurozone sent its currency lower to the detriment of euro-sensitive, Japanese issues.

Brokers here said trepidation about the financial crisis in Europe meant that investors curbed buying and assuming active positions ahead of talks between U.S. Treasury Secretary Timothy Geithner and eurozone financial chiefs, during which it is widely expected Geithner will urge the finance ministers to consider upping the capacity of the European Financial Stability Facility.

Added to concerns about Europe's fiscal health, which caused other major Asian bourses to close lower Wednesday, is a meeting scheduled to convene later between French President Nicolas Sarkozy, German Chancellor Angela Merkel and Greek Prime Minister George Papandreou, during which crisis management in the region will be discussed.

Market players said that many investors were caught on the fence in directionless trade and are eagerly awaiting cues following the hastily convened teleconference later today. And while some took heart that the discussion will take place, others maintain that the very fact the meeting has been scheduled at such short notice, points to the severity of the financial dire straits the region is in.

"The market is very fickle. It is difficult to find stability and direction until there is a solid path to resolving the European debt crisis," said Yoshihiro Okumura, general manager of research at Chibagin Asset Management.

"Analysts said they will turn to the teleconference between Greece, Germany and France later in the global day for further trading hints," he said.

The 225-issue Nikkei Stock Average fell 97.98 points from Tuesday to 8,518.57, marking its lowest close level since April 28, 2009. Meanwhile, the broader Topix index of all First Section issues on the Tokyo Stock Exchange was declined 8.13 points, or 1.08 percent, to finish the day at 741.69.

Further compounding concerns regarding Europe's financial malaise was Chinese Premier Wen Jiabao saying that indebted economies shoal "put their own houses in order," leaving some analysts to believe that Beijing may not bailout Italy by buying up bonds as had previously been hinted at damping speculation China would rescue Europe from a crisis that has sent global financial markets plunging.

"Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign debt crisis in Europe," Premier Wen Jiabao said on the matter.

"He put to rest any speculation China will buy more European debt," said Naoki Fujiwara, at Shinkin Asset Management Co. "Still nobody thought that the bond purchases would be enough to solve the crisis, anyway. There won't be a resolution unless Europe addresses its debts in a fundamental way," Fujiwara said.

With the euro falling to lows of 104.59 yen during trading hours Wednesday exporters with a significant presence in Europe duly retreated.

 VietNamNet/Xinhuanet