Reversing the two-day rally, Asian and European shares slipped into the red as the US administration's move to snap up equity stakes in banks
LONDON: Reversing the two-day rally, Asian and European shares slipped into the red as the US administration's move to snap up equity stakes in banks to improve liquidity, failed to quell rising recessionary fears.
Taking cues from the American bourses, which closed in the negative on Tuesday even as President Bush announced a flurry of measures to restore market stability, Asian and European stocks today declined as much as five per cent.
After witnessing huge rallies for two consecutive trading sessions, most of the Asian benchmark indices excluding Japan's Nikkei 225 tumbled, with India's 30-share Sensex crashing nearly six per cent.
London Stock Exchange's FTSE 100 fell over three per cent while France's Cac 40 and Germany's benchmark index Dax were also trading in the negative territory.
Meanwhile, after pumping in over two trillion Euro in rescue packages to the region's financial institutions, European leaders are meeting today in Brussels. Reportedly, the European Union leaders are expected to seek a restructuring of the financial structures worldwide.
However, Nikkei 225 swarm against the bearish trend and ended the day at 9,547.47 points, gaining little over one per cent. It had jumped over 14 per cent on Tuesday, making it one of the best rallies for the benchmark index.
According to reports, Southeast Asian nations supported by Japan, South Korea and China would be setting up a 'Southeast Asian Fund' with USD 10 billion assistance from the World Bank.
The fund, reportedly, would be used for buying distressed debts and to support banks troubled by the ongoing credit turmoil.
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