ASIAN stock markets plunged today as investors took scant comfort from Washington's passage of a £397bn bank bail-out and focused instead on the deepening financial turmoil in Europe that threatens to slow global growth.
Japan's benchmark Nikkei 225 average was down 4.4 per cent to 10,452, while Hong Kong's Hang Seng index slid 3.7 per cent to 17,198.
Markets in mainland China, Australia, South Korea, Singapore and Thailand also fell sharply and Indonesia's key in
dex plunged more than 5 oer cent.
Traders were spooked by Germany's announcement last night of a new £38.4bn bail-out package for Hypo Real Estate, the country's second-biggest commercial property lender, part of a scramble by European governments to save failing banks.
A dismal report on the US job market on Friday also added to the gloom, raising concerns about weakening US consumer demand for Asian exports.
"This credit crunch looks like it's not going away any time soon," said Alex Tang, head of research at brokerage Core Pacific-Yamaichi in Hong Kong.
"Apart from a credit crunch in Europe, investors are quite concerned about the worsening outlook on the US economy."
"We haven't seen any positive developments in Europe or the US, apart from the rescue plan. But even with the rescue plan, investors are focused on the slowing economy."
Yesterday Belgian prime minister Yves Leterme said that France's BNP Paribas had committed to taking a 75 per cent stake in troubled bank Fortis.
Concerns about fallout from the crisis overshadowed any investor optimism over the US House of Representatives' approval on Friday of a massive bail-out plan that will allow the US government to buy distressed mortgages and securities backed by mortgages from banks and other financial institutions.
On Friday, the Dow Jones industrial average fell 157.47, or 1.5 per cent, to 10,325.38. US stock index futures were more than a per cent lower, suggesting Wall Street was in for another slide when trading opened today.
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