Wall Street fall hits Asian shares
Asian stock markets tumbled, with Hong Kong and South Korea down around 3%, after relentless fears about the financial system and world economy drove Wall Street to its worst finish in nearly 12 years.
European shares opened lower and every major market shuddered from losses across a range of sectors, from banks to technology firms, exporters and commodities, wiping out solid gains from the previous day.
Tokyo's benchmark languished near a 26-year low as news that Nomura Holdings, Japan's biggest broker, will raise billions more in capital by selling shares added to worries about the financial sector.
Most Asian stock exchanges advanced strongly on Monday on reports the US government may take a greater stake in financial giant Citigroup.
But concerns that Citigroup and other banks will keep suffering severe losses flared overnight amid pessimism about a quick economic recovery and doubts the government can return the reeling financial system to working order.
As the Obama administration tried to pacify fears, saying it would launch a revamped bank rescue programme this week, US investors hammered stocks. The Dow Jones and Standard & Poor's 500 indexes plummeted to their lowest closes since 1997.
"Investors are just selling out in disgust across the board - disgust with the market, disgust with the financial problems," said Lorraine Tan, director of equities research at Standard & Poor's in Singapore.
"The government seems to keep throwing in money, but there doesn't seem to be any end to the declines or solutions to the problems," she said.
Earlier in Japan, Japan's Nikkei 225 stock average lost 107.60 points, or 1.5%, to 7,268.56, though selling eased somewhat as the government signalled it may prop up stock prices, possibly by buying shares with public funds. Nomura dived 9.3%.
Hong Kong's Hang Seng sank 376.58, or 2.9%, to 12,798.52, while South Korea's Kospi fell 3.2% to 1,063.88. Mainland Chinese shares, among the year's best performers, got slammed, and the Shanghai benchmark plunged 4.6%.