Following the release of the statement from Moody's Investors Service suggesting that it will undertake a reduction in Spain's credit rating, Japan's Topix index lost for an eighth successive day.

The stocks fell due to concerns over the nation's debt crisis. Nippon Sheet Glass Co., suffered a 1.4% fall, following the 2.7% dip in the stocks of Honda Motor Co.

Meanwhile, Shinsei Bank Ltd. witnessed a 4% drop in the shares as it availed a directive of improvising the business from financial regulators.

In addition, Kawasaki Kisen Kaisha Ltd. also suffered 2.7% fall as the rates in cargo dipped for a consecutive 24th day.

Mitsushige Akino, the Manager of the $450 million project of Ichiyoshi Investment Management Co., said that the market is depicting a passive outlook towards the international economy.

"People are afraid that sovereign risks may be translated into financial institutions' risks and credit contraction", he added.

Nikkei 225 Stock Average dropped 1.5% to 9,239.75, today, while Topix dipped 1.3% to 830.56.

The Topix has fallen 17% against its 52-week high recorder on April 15, following the concerns over the European debt crisis.

On a disappointing note, even the stocks in oil dipped.