Market Report - Asia Stocks Slammed

ZHANG:
Failure to reach a U.S. auto bailout agreement has sent Asian share markets tumbling today, slamming carmakers and knocking the dollar to a 13-year low under 90 yen.

The deal crumbled after the U.S. Senate could not pass a plan to give 14 billion dollars in loans to prevent a possible collapse of one or more of the automakers.

Shares of Japan's largest carmakers -- Toyota, Honda and Nissan went into freefall as investors pulled out of the sector and the yen soared.

That raised the specter of Japanese currency market intervention, as the economy, heavily export dependent, would be further hit by a stronger yen.

Other carmakers like Korea's Hyundai tumbled, while commodity prices fell on speculation that all raw materials demand would decline on any potential bankruptcy.

Hong Kong's share benchmark was dragged down by PetroChina, Asia's top oil and gas producer, which fell as crude prices dropped.

After massive Asian interest rate cuts and fiscal spending aimed at staving off an even greater crisis, Japan is expected to unveil an over 400 billion dollar stimulus package today, while eyes will be on any U.S. plan to assist Detroit's Big Three in the wake of the Senate decision.

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News & Politics

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