Asian markets have plummeted in early trading amid fears the financial crisis may prompt a prolonged global downturn.
Asian markets have plummeted amid fears that the financial crisis would prompt a prolonged global downturn.
Japan's main index opened sharply down, a fall mirrored in Australian, South Korean and Hong Kong stocks.
Japan's main index was almost 6% lower in afternoon trading - at its lowest level in more than five years.
The slump followed a huge sell-off on Wall Street which saw the Dow Jones index close more than 500 points down.
The Nikkei index was down 5.9% - 600 points - at 9,556 while Hong Kong's Hang Seng index was 5.1% lower and Australia's main market lost 5%.
Action call
On Tuesday, US stocks hit their lowest levels in five years as investors continued to worry over the strength of the world's banking institutions.
On Tuesday, US stocks hit their lowest levels in five years as investors continued to worry over the strength of the world's banking institutions.
US President George W Bush has called for unified action to combat the world's financial crisis.
US President George W Bush has called for unified action to combat the world's financial crisis.
At the midday interval, Japan's benchmark Nikkei index was down 4.54%, dipping below the psychologically significant 10,000 mark for the second day running.
Australia's decline came despite the central bank's efforts to stem the crisis by cutting its official interest rate by 1% on Tuesday.
Australia's decline came despite the central bank's efforts to stem the crisis by cutting its official interest rate by 1% on Tuesday.
Hong Kong, which was on public holiday on Tuesday, opened down 5.1% on Wednesday.
Bush call
New York's main stock market index, the Dow Jones, rallied briefly on Tuesday before closing down more than 5%. The index has lost nearly 13% of its value in its past five sessions.
New York's main stock market index, the Dow Jones, rallied briefly on Tuesday before closing down more than 5%. The index has lost nearly 13% of its value in its past five sessions.
Tuesday was another grim day for New York Stock Exchange traders
Tuesday was another grim day for New York Stock Exchange traders
Federal Reserve Chairman Ben Bernanke gave financial markets little reassurance when he said the US was tackling a financial crisis "of historic dimensions".
Federal Reserve Chairman Ben Bernanke gave financial markets little reassurance when he said the US was tackling a financial crisis "of historic dimensions".
He signalled that the Fed - which is invoking emergency powers to buy up company's short-term debts - might be prepared to cut interest rates to support the economy.
He signalled that the Fed - which is invoking emergency powers to buy up company's short-term debts - might be prepared to cut interest rates to support the economy.
Mr Bush telephoned the leaders of France, Britain and Italy to discuss ways of tackling the markets turmoil.
Mr Bush telephoned the leaders of France, Britain and Italy to discuss ways of tackling the markets turmoil.
He called for co-ordinated action by leading industrialised countries to tackle the worldwide credit crunch.
He called for co-ordinated action by leading industrialised countries to tackle the worldwide credit crunch.
The International Monetary Fund said losses on loans in the US, and on financial assets based on those loans, were likely to be double the $700bn provided in a rescue package agreed by Congress.
The International Monetary Fund said losses on loans in the US, and on financial assets based on those loans, were likely to be double the $700bn provided in a rescue package agreed by Congress.
London's main FTSE 100 index had earlier rallied ahead of an anticipated announcement of a package to rescue the UK's beleaguered banks.
London's main FTSE 100 index had earlier rallied ahead of an anticipated announcement of a package to rescue the UK's beleaguered banks.
Britain's Finance Minister Alistair Darling is due to make a statement on the crisis before London's financial markets open, a day after shares in British banking giants HBOS and Royal Bank of Scotland shed nearly a third of their value.
Britain's Finance Minister Alistair Darling is due to make a statement on the crisis before London's financial markets open, a day after shares in British banking giants HBOS and Royal Bank of Scotland shed nearly a third of their value.
As depositors took grew increasingly anxious their savings were at risk, EU finance ministers agreed to increase the guarantee for customers' bank savings accounts to at least 50,000 euros.
As depositors took grew increasingly anxious their savings were at risk, EU finance ministers agreed to increase the guarantee for customers' bank savings accounts to at least 50,000 euros.
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