TOKYO, March 10, 2008 (AFP) - Japanese share prices slumped to the lowest level in two and a half years in early afternoon trade Monday on growing fears that the US economy is in a recession, dealers said.

The benchmark Nikkei-225 index fell by as much as 240.48 points or 1.88 percent to 12,542.32, the lowest level since September 8, 2005.

Investors took their cue from New York where stocks fell for the second straight session Friday as a drop in US employment added to fears about the health of the world's largest economy.