Global stocks continued their slide for the second straight session on Friday, as risk-averse investors seemed little enthused by assurances from global leaders to tame the worsening world economic turmoil.
Optimism over G-20 leaders pledge to have a “strong and coordinated international response” to the brewing crisis seemed to peter away, as European stocks shed their initial gains to slip into the negative territory.
Most of the Asian bourses slumped in the range of 1-6 per cent, ending the day with lesser losses than seen yesterday, which was mainly on account of value buying at lower levels.
The World Bank and the IMF have presented a gloomy picture of global economic conditions, adding to fears that world economy is swooning towards recession.
In Asia, South Korea’s Kospi index emerged as the biggest loser, tumbling nearly six per cent to close at 1,697.44 points. Other major indices including Japan’s Nikkei 225, India’s Sensex and Hong Kong’s Hang Seng fell over one per cent.
China’s benchmark Shanghai SE Composite index managed to close flat at 2,433.16 points.
In addition to intensifying European debt crisis, especially in Greece, slowing manufacturing activities in China and wild fluctuation in currencies are posing fresh concerns.
Europe’s two key indices - France’s CAC 40 and Germany’s DAX - declined about 1 per cent to 2,751.30 points and 5,114.02 points, respectively, in afternoon trade. London Stock Exchange’s FTSE 100 slipped marginally to 5,019.56 points.
Yesterday, the Wall Street was ravaged as investors continued to dump equities. All the major indices dropped over three per cent and Dow Jones Industrial Average tumbled 391 points to close at 10,733.80 points.