TOKYO -- Asian stock markets went into a tailspin Friday, with Tokyo down more than 10.0 percent as fresh panic erupted over fears that authorities are unable to contain the global financial crisis.

Tokyo dived more than 11.0 percent as investors took fright at news that Yamato Life Insurance will file for bankruptcy protection, becoming the first Japanese insurer to go bust amid the global credit crisis.

The bloodbath quickly spread to other markets. Sydney plunged 6.5 percent, Singapore lost more than seven percent, Seoul was down 7.5 percent and Shanghai opened 3.8 percent lower. Hong Kong followed, opening down 7.7 percent.

"It's beyond panic," Oh Hyun-Seok at Samsung Securities told Dow Jones Newswires.

"Concerns about the global economy are deepening further and there is no sign of easing in the global credit crunch."

The Bank of Japan pumped 3.5 trillion yen ($35.5 billion) into the money markets amid the turmoil in Tokyo, while the stock exchange briefly halted some trading in futures and options.

The dollar tumbled to 98.43 yen, down from 99.50 overnight in New York as investors fled risky assets.

Analysts said markets, which sustained huge losses on Wednesday, were still being driven by fear and panic in the midst of a global banking crisis that showed few signs of easing.

The Dow Jones Industrial Average plunged 7.33 percent Thursday as jitters intensified over the global financial crisis.

General Motors tumbled 31 percent to $4.76 after Standard and Poor's raised questions about the auto giant's liquidity.

"Investor sentiment continues to be fragile while there is no easing in worries that the US is heading into recession and while bank funding costs remain elevated," said NAB Capital analyst John Kyriakopoulos in Sydney.

Investors mulled news that US authorities were eyeing the possibility of direct capital injections to troubled banks as a means of shoring up a fragile system.

Such a move, already announced by British authorities, would give the government special shares of the banks in exchange for helping boost badly needed capital in an effort to unclog credit markets, analysts said.

But fears were growing that the measures may be too late to stop the crisis spiralling out of control.

"Shellshocked. That is probably the best way to describe market psychology right now," said analysts at RBC Capital Markets.

Markets were hoping for even more radical action from finance ministers and central bankers from the Group of Seven rich nations which meet in Washington later Friday, after emergency interest rates cuts by top world central banks this week failed to calm the turmoil.

Singapore followed suit on Friday, loosening its monetary policy for the first time in more than four years.

"Without concrete measures -- such as more co-ordinated rate cuts or the Europeans following a unified approach to its banking crisis -- equity investors will remain very nervous," warned Kyriakopoulos.

Share prices had fallen sharply late Thursday in Europe despite a decision by the European Central Bank to offer an unlimited cash lifeline for credit-starved institutions.

The London FTSE 100 index of leading shares fell 1.21 percent to 4,313.80 while in Paris the CAC 40 shed 1.55 percent to finish at 3,442.70. The Frankfurt Dax lost 2.53 percent at 4,887 points.

Bucking the trend was Moscow, where the leading stock markets closed around 10 percent higher, rebounding from the previous day's sharp losses amid global financial turmoil.