Stock markets worldwide suffered steep losses today as fears of a deep global recession intensified. Japan's Nikkei index plunged by 9.4 per cent, while other major markets in Asia, Europe and the US also saw significant declines.
In Japan, the Nikkei fell 989 points to 9,167, driven by a 34.5 per cent rise in corporate bankruptcies over the past year and concerns over weakening demand for cars and electronics. Analysts described the selling as 'almost unstoppable'.
Australia's market dropped five per cent despite a one per cent interest rate cut, the largest single reduction in 16 years. White Funds Management warned of a prolonged global downturn lasting 12 to 18 months.
Indonesia suspended trading after its main index fell more than ten per cent. Hong Kong's Hang Seng closed 5.5 per cent lower, where angry investors from failed Lehman Brothers clashed with police. South Korea's Kospi fell 5.8 per cent to a 26-month low.
The declines follow a five per cent drop on Wall Street, bringing the US market's five-session loss to 13 per cent. The $700 billion US bank bail-out has failed to restore confidence, and Federal Reserve chairman Ben Bernanke hinted at further interest rate cuts.
