Asian markets continue to plunge as recession fears plague investors (AP) (20-11-2008)

HONG KONG (AP) -- Asian stock markets tumbled yet again on Thursday, as indices in Japan and Hong Kong declined more than 5 percent, after fears of a protracted recession sent Wall Street plunging to it lowest point in five years.

Asia's slide extended a global sell-off that accelerated overnight amid lowered projections for U.S. economic activity next year from the Federal Reserve and worries over the fate of America's Big Three automakers, which are pleading for emergency loans from Washington.

Tokyo's benchmark Nikkei 225 average lost 534.82 points, or 6.5 percent to 7, 738.40 as Japan posted its second trade deficit in three months on plummeting demand for the nation's exports. Earlier this week, figures showed Japan had slid into a recession in the third quarter, joining Hong Kong and the euro-zone in posting two straight quarters of economic contraction.

Isuzu Motors Ltd. said it will shed 1,400 temporary and part-time manufacturing workers as it scales back production.

With demand shrinking abroad and a surging yen further undercutting company earnings, Japan's exporters and other companies reliant were all heavily in the red. Canon Inc. fell 6.4 percent and Toyota Motor Corp. declined almost 4 percent.

Elsewhere, Hong Kong's Hang Seng Index sank 704.29 points, or 5.5 percent, to 12,111.51, and South Korea's main stock measure lost 6.6 percent.

In Australia, the key benchmark declined 4.2 percent as weakening commodity prices dragged down the country's resource giants like BHP Billiton and Rio Tinto were both down 9 percent or more.

Source: AP