Asian markets plunge on U.S. recession fears (AP) (16-10-2008)

HONG KONG (AP) -- Asian stocks plunged on Thursday, following another sharp fall Wall Street as worse-than-expected data about the U.S. economy heightened fears of a global recession.

Japan's benchmark Nikkei 225 stock closed down by 11.41% to 8,458.45, while Hong Kong's key index lost 963.65 points, or 8.87% to 14,580.00.

Other markets in the region followed, closing lower as investors became worried by U.S. data showing the country's retail sales fell by an almost twice as much as expected 1.2%. Other readings, released by the U.S. Federal Reserve, indicated the economy continued to slow in the early fall on the worsening credit market conditions, ominous signs that the world's largest economy -- a critical export market for Asia -- was sliding into recession.

In New York Wednesday, the Dow Industrial average ended down 733.08, or 7.87 percent, at 8,577.91 -- the biggest percentage drop since the 8 percent drop on Oct. 26, 1987, which followed Black Monday, the Oct. 19 crash that sent the blue chips down 22.6 percent in a single session.

The massive selling accelerated as the U.S. Federal Reserve Chairman Ben Bernanke warned in a speech Wednesday that patching up the credit markets won't provide an instantaneous jolt to the economy.

Oil prices continued to fall. Light, sweet crude for November delivery slid US$1.48 to US$73.06 in Asian trade on the New York Mercantile Exchange.

Fears about the outlook for the world economy have overtaken the relief the markets breathed at the start of the week on the unveiling of a series of bank rescue packages from governments around the world.

On Tuesday, the U.S. government followed Europe's lead and announced it will pump some $250 billion into shares of its leading banks, including JP Morgan Chase & Co., Bank of America Corp., Goldman Sachs Inc. and Citigroup Inc.

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Source: AP