TOKYO, March 13 (Reuters) - Japan's benchmark Nikkei fell more than 3 percent to a new 2-½ year closing low on Thursday as the dollar hit a 12-year low against the yen and exporters such as Honda Motor Corp (7267.T: Quote, Profile, Research) extended losses on growing fears of a U.S. recession.
Major banks were battered as well, with Mizuho Financial Group (8411.T: Quote, Profile, Research) hitting its lowest close in four years on growing doubts about the Federal Reserve's efforts to aid strained credit markets and limit the damage to the U.S. economy.
The Nikkei .N225 closed down 3.3 percent at 12,433.44, its lowest since Aug. 31, 2005, after shedding more than 400 points. The broader TOPIX was down 3.1 percent at 1,215.87, also a 2-½ year low. (Reporting by Elaine Lies)