Market Report - Asia Slumps

WONG:
And in todays Market Report Asian financial shares fell sharply following U.S. peers, while Japan's benchmark Nikkei neared 26-year lows.

Japan's finance minister says his government may buy shares as falling equity prices eat away at the capital bases of banks and other businesses.

One analyst says a lack of clarity by policymakers, especially over U.S. bank nationalization plans, is spooking the markets.

[Daruisz Kowalczyk, SJS Markets, Ltd.]:
"As painful as it is, governments need to step in and nationalize major banks whose books are saddled with too many toxic assets to resume normal lending. Without a sufficient flow of credit to the economy the recession is not going to end."

Japans economy shrank 3.3 percent last quarter, the most in 35 years.

Hong Kong's economy shrank in the fourth quarter of 2008. Its the first annual decline since the SARS outbreak six years ago, and economists predict it could contract 5 percent this year.

Meanwhile, China wants to consolidate its automobile sector through a series of mergers. Some 14 major automakers dominate 90 percent of the market.

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News & Politics

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