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| Version 1 | Version 2 |
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| Stocks fall amid new rescue moves | Stocks fall amid new rescue moves |
| (about 2 hours later) | |
| The Bank of Japan has injected another 1.5 trillion yen ($14.4bn) into money markets, as Asian shares continued the global trend downwards. | The Bank of Japan has injected another 1.5 trillion yen ($14.4bn) into money markets, as Asian shares continued the global trend downwards. |
| Tokyo's Nikkei average dropped 3.2% and South Korea's main stock index fell 3% in early trading on Thursday. | |
| Analysts say brokers are not convinced by US efforts to stabilise markets with the $85bn bailout of insurers AIG. | Analysts say brokers are not convinced by US efforts to stabilise markets with the $85bn bailout of insurers AIG. |
| US stocks plunged more than 4% to a three-year low on Wednesday, while European markets also ended down. | US stocks plunged more than 4% to a three-year low on Wednesday, while European markets also ended down. |
| How big are these companies? | How big are these companies? |
| The Japanese central bank's injection was the third consecutive day it had tried to shore up cash markets since the Nikkei hit a three-year low on Tuesday. | The Japanese central bank's injection was the third consecutive day it had tried to shore up cash markets since the Nikkei hit a three-year low on Tuesday. |
| Across Asia, central banks have already pumped $33bn into money markets this week in an attempt to allay investors' concerns and ensure the supply of funds does not dry up. | Across Asia, central banks have already pumped $33bn into money markets this week in an attempt to allay investors' concerns and ensure the supply of funds does not dry up. |
| The financial markets continue to be hardest hit by the share slide, says the BBC's Chris Hogg in Tokyo, and it looks like traders are in for a white-knuckle ride over the next few hours. | |
| Traders saw plummeting shares on Wall St on Wednesday | |
| By 0400GMT, Hong Kong's Hang Seng had dipped below the 17,000 mark - a fall of 5% - Taiwan was down 4.5% and Australia had dropped 3.5%. | |
| Brokers in Japan say the markets are in freefall because investors fear the US government's efforts to stop the financial system's turmoil are not working. | |
| Consequently they are searching for safer places to put their money than stocks and shares, our correspondent says. | Consequently they are searching for safer places to put their money than stocks and shares, our correspondent says. |
| The flight of investors from shares has taken the price of gold to a 10-year high. | |
| Many Japanese institutions have assets insured by AIG. | Many Japanese institutions have assets insured by AIG. |
| And in Singapore, for the second day running, hundreds of AIG policyholders queued up outside its offices trying to surrender or cancel policies they now fear could turn out to be worthless. | |
| Banking chaos | Banking chaos |
| The Federal Reserve's AIG rescue package followed the collapse earlier this week of 158-year-old US investment bank Lehman Brothers, which sent shockwaves through the world's financial community and sparked a global share price plummet. | The Federal Reserve's AIG rescue package followed the collapse earlier this week of 158-year-old US investment bank Lehman Brothers, which sent shockwaves through the world's financial community and sparked a global share price plummet. |
| Another investment bank, Merrill Lynch, has since been sold off to Bank of America. | Another investment bank, Merrill Lynch, has since been sold off to Bank of America. |
| The global financial crisis In pictures | |
| And there has been feverish speculation about the future of two other leading US banks - Morgan Stanley and Washington Mutual. | And there has been feverish speculation about the future of two other leading US banks - Morgan Stanley and Washington Mutual. |
| The New York Times quoted unnamed sources as saying an auction for Washington Mutual was under way. The Wall Street Journal reported that both banking giant Citigroup and Wells Fargo had expressed an interest in a takeover. | The New York Times quoted unnamed sources as saying an auction for Washington Mutual was under way. The Wall Street Journal reported that both banking giant Citigroup and Wells Fargo had expressed an interest in a takeover. |
| Meanwhile Reuters reported that Morgan Stanley, the second largest bank in the US which on Wednesday saw a quarter of its value wiped off its share price, had held preliminary takeover talks with Wachovia. | Meanwhile Reuters reported that Morgan Stanley, the second largest bank in the US which on Wednesday saw a quarter of its value wiped off its share price, had held preliminary takeover talks with Wachovia. |
| None of the companies involved has made any comment on the speculation and no negotiations can be confirmed. | None of the companies involved has made any comment on the speculation and no negotiations can be confirmed. |
| The share-price of Goldman Sachs, the other surviving US investment giant, also fell on Wednesday, by 14%. | The share-price of Goldman Sachs, the other surviving US investment giant, also fell on Wednesday, by 14%. |
| The US Securities and Exchange Commission, meanwhile, said hedge funds and large investors would be required to disclose their short-trade positions, Reuters reported. | The US Securities and Exchange Commission, meanwhile, said hedge funds and large investors would be required to disclose their short-trade positions, Reuters reported. |
| Rocky road | Rocky road |
| The White House said the US Treasury was working to see if it could stem other losses, and defended the $85bn (£48bn) emergency loan for AIG. | The White House said the US Treasury was working to see if it could stem other losses, and defended the $85bn (£48bn) emergency loan for AIG. |
| White House spokeswoman Dana Perino said the US economy "has the strength to be able to deal with these shocks". But she added the government was still concerned about the stability of other big financial companies. | White House spokeswoman Dana Perino said the US economy "has the strength to be able to deal with these shocks". But she added the government was still concerned about the stability of other big financial companies. |
| Despite the assurance, shares in AIG fell a further 45% to $2.05 on Wednesday. | Despite the assurance, shares in AIG fell a further 45% to $2.05 on Wednesday. |
| Analysts say trading in general is likely to remain rocky amid concern that financial instability will continue. | Analysts say trading in general is likely to remain rocky amid concern that financial instability will continue. |
| Top UK mortgage lender HBOS had a rollercoaster ride on Wednesday before the news broke that it was to be taken over by Lloyds TSB in a £12bn merger. | Top UK mortgage lender HBOS had a rollercoaster ride on Wednesday before the news broke that it was to be taken over by Lloyds TSB in a £12bn merger. |
| In Russia, stock exchange trading was suspended on Wednesday following steep falls in shares. | In Russia, stock exchange trading was suspended on Wednesday following steep falls in shares. |
| Return to top | Return to top |