Asian shares tumble
Asia's stocks were hammered again Monday, with Hong Kong losing almost 13 percent and Japan hitting a 26-year low, as traders ignored emergency steps by world governments and a unity pledge by the G7.
Markets across the region were in freefall as traders went into a massive sell-off as fears over a global recession continued to weigh on sentiment.
Hong Kong's Hang Seng Index ended that day 12.7 percent down -- its biggest single day percentage drop since 1991 -- while Tokyo shed 6.36 percent to its lowest level since 1982.
Sydney fell 1.6 percent, Manila reeled from a 12.3 percent plunge to its lowest in three years and Taipei dropped 4.65 percent, while Shanghai shed 6.32 percent.
And the Thai bourse was suspended for 30 minutes after it dived more than 10 percent, triggering an automatic shut-down. It closed 10.50 percent lower.
Bucking the trend, the Seoul market recovered from heavy early losses to end 0.8 percent higher after South Korea's central bank cut its key interest rate by 75 basis points, its largest reduction yet.
The fresh turmoil came despite a pledge by the Group of Seven major economies to cooperate to bring stability to the ailing financial system.
The group -- comprising Britain, Canada, France, Germany, Italy, Japan and the United States -- sought to calm nerves by affirming its "shared interest in a strong and stable international financial system."
It also voiced concern about "excessive volatility" in the value of the yen, which Friday soared to a 13-year high against the dollar as worried investors fled to the relative safety of the Japanese currency.
The yen is unlikely to fall significantly unless the G7 takes "drastic steps such as intervention," said Kenichi Yumoto, vice head of forex trading at Societe Generale in Tokyo.
US and European markets suffered heavy losses on Friday, with Wall Street's Dow Jones index ending down 3.59 percent.
Markets expect fresh steps by global authorities this week to try to stabilise shaky markets. The US Federal Reserve is expected to cut interest rates Wednesday from the current level of 1.5 percent.
Investors are also waiting for Thursday's US gross domestic product figures for the third quarter, which are expected to show a contraction.
A slew of economic indicators and corporate results are also due this week in the United States, Europe and Japan, which analysts said were unlikely to give much cause for optimism.
In other markets Jakarta was down 6.3 percent and Mumbai shed 2.2 percent.
Wellington, Kuala Lumpur and Singapore were all closed for public holidays.
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