Prime Minister Taro Aso on Oct. 7 called for measures to stimulate domestic demand in addition to a pending extra budget as stock prices plunged globally amid the U.S.-triggered financial turmoil, Chief Cabinet Secretary Takeo Kawamura said.

The Nikkei Stock average fell below the 10,000 line temporarily Oct. 7 for the first time in four years and 10 months. KYODO PHOTO

Citing falls in stock prices and the appreciation of the yen against the dollar, Aso was quoted as saying, "(Japan's) real economy could gradually be affected." He added, "Particularly, it is necessary to take measures to boost domestic demand."

The remarks came during an informal ministerial session following the day's Cabinet meeting in the morning.

The Nikkei stock average fell below the 10,000 line temporarily Oct. 7 for the first time in four years and 10 months, after the Dow Jones industrials ended below 10,000 Oct. 6 for the first time since 2004.

At the House of Representatives Budget Committee, Aso described the situation as "comparable with" the 1929 Great Depression.

"The biggest problem is that the United States is mired with a banking system crisis," he said. "We are in an unprecedented, extremely difficult situation."

"The government must give priority to economic and financial measures for the immediate future" rather than dissolution of the House of Representatives for a general election, Aso said.

The government is seeking to enact a supplementary budget worth about ¥1.81 trillion for the current fiscal year to alleviate the negative impact of spikes in energy and raw materials costs on the Japanese economy.