Share prices in Asia continued to fall sharply on Tuesday, as investors worldwide wait for the reaction from US markets, which were closed on Monday.
Share prices in Asia continued to fall sharply on Tuesday, as investors worldwide wait for the reaction from US markets, which were closed on Monday.
Japan's Nikkei index closed down 5.65%, meaning it has fallen 18% this year.
Japan's Nikkei index closed down 5.65%, meaning it has fallen 18% this year.
Trading on the Bombay Stock Exchange was suspended for an hour after hefty early losses, but later resumed trading with the main index down 12%.
Trading on the Bombay Stock Exchange was suspended for an hour after hefty early losses, but later resumed trading with the main index down 12%.
The falls were sparked by fears of a US recession after a proposed US stimulus package disappointed investors.
The falls were sparked by fears of a US recession after a proposed US stimulus package disappointed investors.
Trading was also suspended briefly in South Korea as the market dropped more than 6%, while Hong Kong's Hang Seng index lost more than 8%.
Trading was also suspended briefly in South Korea as the market dropped more than 6%, while Hong Kong's Hang Seng index lost more than 8%.
South Korean shares dropped by about 5%, with Sydney's market continued its longest losing streak for 26 years, closing down 7.1%.
South Korean shares dropped by about 5%, with Sydney's market continued its longest losing streak for 26 years, closing down 7.1%.
'Remain calm'
'Remain calm'
In Bombay, India's main index fell 9.75% within minutes, triggering an automatic one-hour halt in trading.
In Bombay, India's main index fell 9.75% within minutes, triggering an automatic one-hour halt in trading.
The loss in Indian shares came after a fall of 7.41% on Monday, the Sensex's worst day.
The loss in Indian shares came after a fall of 7.41% on Monday, the Sensex's worst day.
India's Finance Minister P Chidambaram has urged the Indian investors to "remain calm" and advised them to "stay invested".
India's Finance Minister P Chidambaram has urged the Indian investors to "remain calm" and advised them to "stay invested".
It basically stems from the United States Hiroko OtaJapanese minister for economic and fiscal policy
It basically stems from the United States Hiroko OtaJapanese minister for economic and fiscal policy
Mr Chidambaram said that "enough liquidity will be provided to the brokers to tide over the present crisis".
Mr Chidambaram said that "enough liquidity will be provided to the brokers to tide over the present crisis".
In China, the main Shanghai Composite Index fell more than 5%, while markets in Taiwan saw similar falls.
In China, the main Shanghai Composite Index closed down 7.2% at a five month low, having lost 17% in the past six days of trading.
Global co-operation
Global co-operation
The Japanese government said it saw no reason to intervene to support the markets and a Bank of Japan meeting left interest rates unchanged.
The Japanese government said it saw no reason to intervene to support the markets and a Bank of Japan meeting left interest rates unchanged.
"Stock markets across the world are falling and it basically stems from the United States," said Hiroko Ota, the minister for economic and fiscal policy.
"Stock markets across the world are falling and it basically stems from the United States," said Hiroko Ota, the minister for economic and fiscal policy.
"It is difficult at the moment to mull action by Japan alone. Instead, we should co-operate globally," she said.
"It is difficult at the moment to mull action by Japan alone. Instead, we should co-operate globally," she said.
Monday saw global stock indexes suffer their biggest slump since the terrorist attacks of 11 September 2001.
Monday saw global stock indexes suffer their biggest slump since the terrorist attacks of 11 September 2001.
London's FTSE 100 index tumbled 5.5% to 5,578.2, wiping £77bn ($149bn) off the value of its listed shares.
London's FTSE 100 index tumbled 5.5% to 5,578.2, wiping £77bn ($149bn) off the value of its listed shares.
Indexes in Paris and Frankfurt slumped by about 7%, while share prices in South America also dropped.
Indexes in Paris and Frankfurt slumped by about 7%, while share prices in South America also dropped.
The Brazilian stock market - the largest in the region - fell by 6.6%, while Mexico's IPC index fell 5.35%.
The Brazilian stock market - the largest in the region - fell by 6.6%, while Mexico's IPC index fell 5.35%.
Brazil's real dropped by 2.47% against the dollar, and Mexico's peso lost 0.85% against the US currency, registering a five-month low.
Brazil's real dropped by 2.47% against the dollar, and Mexico's peso lost 0.85% against the US currency, registering a five-month low.
Investors questioned whether a recent plan to boost the US economy would be enough to avert a full-blown recession.
Investors questioned whether a recent plan to boost the US economy would be enough to avert a full-blown recession.
Dominique Strauss-Kahn, the head of the International Monetary Fund, said the global economic situation was "serious" and that all countries in the world were suffering in the wake of a slowdown in US growth.
Dominique Strauss-Kahn, the head of the International Monetary Fund, said the global economic situation was "serious" and that all countries in the world were suffering in the wake of a slowdown in US growth.
Last week the US government announced a financial stimulus plan which would involve about $145bn in tax cuts to encourage spending.
Last week the US government announced a financial stimulus plan which would involve about $145bn in tax cuts to encourage spending.
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