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Stocks, Dollar Dive as Bailout Collapses

Markets fall in Asia, Europe; car companies lead declines

By Jason Farago,  Newser Staff

Posted Dec 12, 2008 4:19 AM CST
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(Newser) – Asian markets dove today, and European exchanges opened down as the Senate abandoned efforts to bail out the American auto industry. The Nikkei in Tokyo and the Hang Seng in Hong Kong both closed down about 5.5%, with major exporters like Toyota and Sony leading declines. The bailout's collapse also delivered a pounding to the dollar, which dropped to a 13-year low of 88 yen before recovering slightly, reports the Financial Times.

London, Paris and Frankfurt bourses all fell this morning, with carmakers from BMW to Peugeot taking major hits. "Markets were calming down, so this is a terrible way to end the week and erase that sentiment. It couldn’t come at a worse time," said a banker in Tokyo.

A money trader reacts as the US dollar trades at 89.70 yen while Japan's benchmark Nikkei 225 stock average is at 8285.78 points today.
A money trader reacts as the US dollar trades at 89.70 yen while Japan's benchmark Nikkei 225 stock average is at 8285.78 points today.   (AP Photo/Shuji Kajiyama)
Money traders at a Tokyo dealing room head for a meeting as the US dollar trades at 89.69 yen today.
Money traders at a Tokyo dealing room head for a meeting as the US dollar trades at 89.69 yen today.   (AP Photo/Shuji Kajiyama)
Money traders work as the US dollar is traded at 89.30 yen and Japan's benchmark Nikkei 225 stock average is at 8252.52 points today.
Money traders work as the US dollar is traded at 89.30 yen and Japan's benchmark Nikkei 225 stock average is at 8252.52 points today.   (AP Photo/Shuji Kajiyama)
The screen shows the Hang Seng Index at a bank in Hong Kong today. The blue-chip Hang Seng Index dropped 855.51 points to 14,758.39 points.
The screen shows the Hang Seng Index at a bank in Hong Kong today. The blue-chip Hang Seng Index dropped 855.51 points to 14,758.39 points.   (AP Photo/Kin Cheung)
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London opens down 4%
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World • Money • Politics

 
markets • Nikkei • Hang Seng • Asian stocks • auto industry • European stocks • auto bailout

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