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| Version 0 | Version 1 |
|---|---|
| Shares fall after bail-out fails | Shares fall after bail-out fails |
| (about 1 hour later) | |
| European and Asian markets have fallen sharply on news the Senate has rejected the US carmaker bail-out package. | European and Asian markets have fallen sharply on news the Senate has rejected the US carmaker bail-out package. |
| Japan's Nikkei share index fell 484.68 points, or 5.6%, to 8253.87, while Hong Kong's Hang Seng index sank 6.9%. Other regional markets also fell. | Japan's Nikkei share index fell 484.68 points, or 5.6%, to 8253.87, while Hong Kong's Hang Seng index sank 6.9%. Other regional markets also fell. |
| In Europe, shares were also down in early trading. The FTSE fell 2.7%, the Cac 40 fell 4.7% and the Dax fell 3.4%. | |
| "It's a very bad sign. US stocks will likely nosedive," said Yasutoshi Nagai, chief economist at Daiwa Securities. | "It's a very bad sign. US stocks will likely nosedive," said Yasutoshi Nagai, chief economist at Daiwa Securities. |
| Stronger yen | Stronger yen |
| Japanese carmakers were hit particularly hard as sentiment surrounding the auto sector deteriorated yet further following the rejection by Senate of the the proposed $14bn bail-out of Chrysler, Ford and General Motors. | Japanese carmakers were hit particularly hard as sentiment surrounding the auto sector deteriorated yet further following the rejection by Senate of the the proposed $14bn bail-out of Chrysler, Ford and General Motors. |
| Shares in Toyota, Honda and Nissan all falling by at least 10%. | Shares in Toyota, Honda and Nissan all falling by at least 10%. |
| Japanese exporters were also forced lower as the dollar sank to below 89 yen, a 13-year low. | Japanese exporters were also forced lower as the dollar sank to below 89 yen, a 13-year low. |
| The sharp drop in Asian shares has wiped out gains made during the last week. | The sharp drop in Asian shares has wiped out gains made during the last week. |
| "Investors used the botched US auto bail-out deal as an excuse to pocket the recent gains," Arch Shih at Taiwan Securities said. | "Investors used the botched US auto bail-out deal as an excuse to pocket the recent gains," Arch Shih at Taiwan Securities said. |
| The falls sparked reports that the Japanese government may increase its stimulus package, announced in October, to boost activity in what is Asia's largest economy. | The falls sparked reports that the Japanese government may increase its stimulus package, announced in October, to boost activity in what is Asia's largest economy. |
| It may also be forced to intervene to stop the yen strengthening further against the dollar. | It may also be forced to intervene to stop the yen strengthening further against the dollar. |
| "Without an intervention, the dollar could hit 85 yen, so Japan will likely intervene to prevent that from happening," said Masafumi Yamomoto at the Royal Bank of Scotland in Tokyo. | "Without an intervention, the dollar could hit 85 yen, so Japan will likely intervene to prevent that from happening," said Masafumi Yamomoto at the Royal Bank of Scotland in Tokyo. |