Asian Stocks Continue Plunge

Stocks tumble for second straight day
By Rob Quinn,  Newser Staff
Posted Jan 22, 2008 3:25 AM CST
A man looks at the electronic display board in downtown Hong Kong as the city's benchmark Hang Seng Index drops 1,383.01 points, or 5.49 percent, to 23,818.86 Monday, Jan. 21, 2008.( AP Photo/Lo Sai Hung...   (Associated Press)
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(Newser) – Jitters over the US economy led to a major sell-off in Asian markets for the second straight day, with Australia's benchmark index closing down 7.1%—the biggest single-day loss in nearly 20 years. India's Sensex index skidded 10%, triggering a shutdown, but rallied to close down 4.6%. Japan's Nikkei and the broader Topix index finished 5.7% lower, and Hong Kong's Hang Seng index slumped 8.7% the day after global indexes suffered their biggest plunge since 9/11.

"It doesn't look good at all. We expected it to fall, but nobody expected this kind of correction," said a trader in India. Fearful investors are worried about the impact a possible US recession could have on Asia's export-driven economies. Many analysts believe President Bush's measures to boost the economy are too little, too late.