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Japanese index falls more than 7% Asian markets continue to slide
(about 3 hours later)
Japan's Nikkei index has fallen more than 7% in early trading, following a day of sharp drops in financial markets around the world. Asian markets have continued to react to a day of sharp drops in global markets, with Japan's Nikkei index down more than 4% after morning trading.
In New York, the Dow Jones Index closed almost 5% down while London, Paris and Frankfurt suffered substantial losses.
Meanwhile South Korea's central bank has cut its interest rate to 4%, the third cut in a month.Meanwhile South Korea's central bank has cut its interest rate to 4%, the third cut in a month.
In New York, the Dow Jones Index had closed almost 5% down after losses on markets across Europe.
The International Monetary Fund has predicted that developed economies will shrink for the whole of next year.The International Monetary Fund has predicted that developed economies will shrink for the whole of next year.
On Thursday, the Dow Jones plummeted 443.2 points, or 4.9%, nearly matching Wednesday's 486-point slide. In early trading on Friday, the Nikkei index fell more than 7%, but later rebounded and Hong Kong's Hang Seng index was down 2.2% by mid-morning.
The falls came a day after sharp falls in Western markets.
The Dow Jones plummeted 443.2 points on Thursday, or 4.9%, nearly matching Wednesday's 486-point slide.
In Europe, London's FTSE 100 closed down 5.7%, Frankfurt's Dax dropped 6.8% and the Cac 40 in Paris fell 6.4%.In Europe, London's FTSE 100 closed down 5.7%, Frankfurt's Dax dropped 6.8% and the Cac 40 in Paris fell 6.4%.
'More needed''More needed'
The drops came despite cuts in interest rates by many central banks, in an attempt to boost consumer spending and business activity and avoid a prolonged slowdown.The drops came despite cuts in interest rates by many central banks, in an attempt to boost consumer spending and business activity and avoid a prolonged slowdown.
In a shock move, UK interest rates were cut 1.5% on Thursday, taking them to 3%, the lowest level since 1955, and the European Central Bank cut its key rate by half a percentage point to 3.25%.In a shock move, UK interest rates were cut 1.5% on Thursday, taking them to 3%, the lowest level since 1955, and the European Central Bank cut its key rate by half a percentage point to 3.25%.
The IMF has welcomed rate cuts but said more needed to be done.The IMF has welcomed rate cuts but said more needed to be done.
Figures released on Wednesday showed retail sales fell in the eurozone during September, while US figures indicated that the service sector had suffered a sharper-than-expected drop in activity during October.Figures released on Wednesday showed retail sales fell in the eurozone during September, while US figures indicated that the service sector had suffered a sharper-than-expected drop in activity during October.
On Thursday, both Toyota and Isuzu Motors slashed annual profit forecasts, providing a further reminder of the weakness of the global economy.On Thursday, both Toyota and Isuzu Motors slashed annual profit forecasts, providing a further reminder of the weakness of the global economy.