Nikkei briefly down 4 pct as autos fall

TOKYO, March 30 (Reuters) - Japan's Nikkei stock average fell 4 percent on Monday after a U.S. autos task force rejected restructuring plans submitted by General Motors (GM.N) and Chrysler LLC, sending automakers tumbling. In a stunning reversal for management at both automakers and GM investors and creditors who had bet on a softer line, the Obama administration task force warned both firms could be put through bankruptcy to slash debts. [ID:nN30310350]

The news sent the dollar down 0.9 percent against the yen, undercutting exporters such as Canon Inc (7751.T), while banks, already weak on downbeat comments from U.S. bank executives, extended losses on worries about the impact of a GM bankruptcy.

"The fact that there's still a chance of GM going bankrupt is shocking," said Takashi Ushio, head of the investment strategy division at Marusan Securities. The benchmark Nikkei N225 shed 346.92 points to 8,280.05 after surging 8.6 percent last week, while the broader Topix .TOPX fell 3.9 percent to 792.04.

Honda Motor Co (7267.T) lost 6.5 percent to 2,300 yen and Toyota Motor Corp (7203.T) fell 3.1 percent to 3,160 yen. The autos sub-index .ITEQP.T lost 4.9 percent. (Reporting by Elaine Lies; Editing by Edwina Gibbs)