Stocks Plunge On Recession Fears
Shares have plunged in Asia on growing fears of a global recession.
Japan’s Nikkei tumbled more than 7% at one point, hitting levels last seen in May 2003.
It recovered some of the losses to end down 2.46% amid hopes of a bounce on Wall Street later in the day.
In London, the FTSE 100 index of leading shares fluctuated in and out of positive territory.
The South Korean market closed down 7.4%.
Share prices in Hong Kong and Australia were also down as the first markets opened following Wednesday’s mass sell-off on Wall Street.
The Dow Jones industrial index closed down 5.6% as the continued pressures of the credit crunch sparked panic-selling.
News that world leaders are to meet next month to discuss the global financial crisis failed to halt a plunge that began early on Wednesday and accelerated in late US trading.
In falls reminiscent of the worst of the turbulence of the past few weeks, European markets lost 4% to 5%, while the Dow closed down 509.83 points at 8,523.83.
In Brazil, regulators suspended trade on the Sao Paulo stock exchange after the main Bovespa index plunged more than 10%, reflecting chaos in fellow Latin American
The White House announced that leaders of the Group of 20 rich and emerging countries would gather in Washington on November 15.
It was part of efforts to co-ordinate responses to the worst financial crisis since the Great Depression of the 1930s.
The announcement came as Gordon Brown acknowledged Britain was “likely” entering a recession.
Crucial data on Friday is expected to show that the British economy shrank in the third quarter after zero growth in the second.
The technical definition of a recession is two straight quarters of negative economic growth.
A similarly gloomy assessment came in a forecast from the Swiss bank UBS which said Europe faced “inevitable” recession which would begin “almost in sync” with the US.
The pound plunged to a five-year trough but the euro also took a pummelling, falling to its lowest level for almost two years against the US dollar.
There were also more signs of trouble in the emerging markets, with South Africa’s rand falling to a six-year low against the dollar.
In Argentina, a day after President Cristina Kirchner moved to nationalise private pension funds, the main stock market index fell more than 16%.
Original article: Stocks Plunge On Recession Fears From skynews
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