Share prices in Asia have followed the sharp downward trend set by US and European markets, amid growing fears of a global recession.
Share prices in Asia have followed the sharp downward trend set by US and European markets, amid growing fears of a global recession.
Japan's Nikkei index fell by about 10% in early trading. Shares in Australia and South Korea dropped by at least 5%.
Japan's Nikkei index fell by about 10% in early trading. Shares in Australia and South Korea dropped by at least 5% and those in Taiwan by more than 3%.
The moves followed the worst one-day percentage fall in New York's Dow Jones index since October 1987 - it closed almost 8% down.
New York's Dow Jones index saw its worst one-day fall on Wednesday since October 1987, closing almost 8% down.
There were also big falls in London and other European markets on Wednesday.
There were also big falls in London and other European markets on Wednesday.
Ben Bernanke, the chairman of the Federal Reserve, warned that the US economy now faced a "significant threat" from the credit crisis.
Ben Bernanke, the chairman of the Federal Reserve, warned that the US economy now faced a "significant threat" from the credit crisis.
Treasury Secretary Henry Paulson has hinted he does not expect to return to the post in the new US presidential administration which will follow the November election.
Treasury Secretary Henry Paulson has hinted he does not expect to return to the post in the new US presidential administration which will follow the November election.
Slowing economy
Slowing economy
Many investors are now convinced that the US economy, if not already in a recession, is moving towards one.
Many investors are now convinced that the US economy, if not already in a recession, is moving towards one.
September retail sales recorded their biggest monthly decline in more than three years, while a Federal Reserve report showed economic activity had weakened across the country.
September retail sales recorded their biggest monthly decline in more than three years, while a Federal Reserve report showed economic activity had weakened across the country.
In a speech in New York, Mr Bernanke said the US had avoided making the mistakes that helped plunge the country into the 1930s Great Depression.
In a speech in New York, Mr Bernanke said the US had avoided making the mistakes that helped plunge the country into the 1930s Great Depression.
He pledged that the Fed would continue to fight the credit crisis. But he warned it would take time for the country's economic health to mend.
He pledged that the Fed would continue to fight the credit crisis. But he warned it would take time for the country's economic health to mend.
"The turmoil in financial markets and the funding pressures on financial firms pose a significant threat to economic growth," he said.
"The turmoil in financial markets and the funding pressures on financial firms pose a significant threat to economic growth," he said.
"The last decade has shown that bursting bubbles can be an extraordinarily dangerous and costly phenomenon for the US economy."
"The last decade has shown that bursting bubbles can be an extraordinarily dangerous and costly phenomenon for the US economy."
Earlier in Europe, markets were also badly hit by fears of recession - the UK's FTSE 100 fell 7.16%, Germany's Dax shed 6.49% and France's Cac 40 lost 6.82%.
Earlier in Europe, markets were also badly hit by fears of recession - the UK's FTSE 100 fell 7.16%, Germany's Dax shed 6.49% and France's Cac 40 lost 6.82%.
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