Monday, October 27, 2008

Global stocks took another heavy beating

Stock around the world took another heavy beating Monday, with shares in Japan falling to their lowest level in 26 years, as fears of a global recession continued to sweep markets.

US futures, which offer an indication o
f how Wall Street may open when trading begins in New York, was sharply lower.

European shares tumbled and Britain's FTSE 100 down 3.7%. The CAC-40 in Paris was down 5.6% and Germany's DAX fell 3.3% Hong Kong shares plunge 13% as fears of global recession sweep markets. Nikkei closes at 26-year low.

Tokyo shares were hit hard as the yen fluctuated near a record high against the dollar. A rising yen makes Japanese exports relatively more expensive.

The yen's appreciation spurred financial ministers and central bank presidents of the world's seven leading industrialized nations to issue a statement Monday expressing their worries about the situation.

"We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability," the Group of Seven said in a statement.

Elsewhere in Asia, the KOSPI in Seoul, South Korea, was the lone bright spot, closing up nearly 1%.

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