Asian markets remain weak

Asian markets were trading lower today over mounting concerns about the health of Europe’s banks and France’s debt rating.

Japan’s Nikkei 225 index sank 1.3 per cent to 8,922.32, wiping out the previous session’s gains. The country’s strengthening currency clobbered Japan’s behemoth export sector.

Honda Motor Corp lost 3 per cent, while Nissan Motor Corp stumbled 3.5 per cent. Toyota, Mazda and Sukuzi Motor Corps each fell more than 1 per cent.

Consumer electronics giants also slid. Sony Corp fell 2.4 per cent and Panasonic Corp 2.2 per cent.

Hong Kong’s Hang Seng index stumbled 1 per cent to 19,489.03, but South Korea’s Kospi index reversed the earlier losses and rose 0.8 per cent to 1,820.47.

US stocks plummeted over four per cent on Wednesday, more than wiping out a rebound as European debt troubles and worries of a new US recession kept investors nervous.

The Dow Jones Industrial Average closed down 519.83 points (4.62 per cent) to 10,719.94, reversing its 430 points gain on Tuesday, and the broader S&P 500 fell 51.77 points (4.42 per cent) to 1,120.76.

The tech-heavy Nasdaq lost 4.09 per cent or 101.47 points to 2,381.05.

American bank stocks took hits because investors fretted that debt problems overseas might reach the United States.

France came under pressure amid concerns that it could follow the US and become the next country to lose its top AAA rating.

Standard & Poor’s rating agency stripped the US of its AAA credit rating late last week, sending global stocks into a tailspin.

The downgrade of US debt is fuelling worries that France could be next to lose the rare top rating if it contributes to further bailouts of Eurozone countries.

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