Asian markets decline on finance gloom; Nikkei near 26-year lows (AP) (03-03-2009)

HONG KONG (AP) -- Most Asian stock markets fell further on Tuesday after the continuing gloom at AIG and HSBC pulled Wall Street down to new multiyear lows overnight.

Declines across the region added to a global sell-off that started last week as the world economic slump showed no signs of abating and financial firms, despite billions in government aid, continued reeling from losses.

After AIG announced a stunning $62 billion loss for the fourth quarter the slide was inevitable. In Europe, HSBC Holdings PLC, said it needs to raise about $18 billion and reported a 70 percent drop in earnings for last year. Shares in HSBC, Europe's largest bank by market value, plunged nearly 18 percent in Hong Kong trade.

With no end to the economic crisis in sight, markets in the U.S. and Europe plummeted overnight, and the Dow Jones benchmark finished below 7,000 for the first time since May 1, 1997.

Tokyo's benchmark Nikkei 225 stock average lost 27.18 points, or 0.4 percent, to 7,252.97, after a 3.8 percent drop Monday. Earlier in the day, the key index dipped below its lowest close in 26 years, set Oct. 27. It remained just above a 26-year intraday low of 6,994.90 reached Oct. 28.

In Hong Kong, the Hang Seng lost 182.71 points, or 1.5 percent, to 12,134.75.

Shanghai's key index was off 1.3 percent, with markets in Australia and Taiwan also losing ground.

Elsewhere, South Korea's Kospi gained 0.1 percent to 1,019.87.

Source: AP