Asian stocks tailspin and investors run for cover amid 'complete loss of confidence'

Fear on Wall Street is still ricocheting through global markets today, forcing banking stocks across Asia into a tailspin as markets fell sharply.

Hong Kong stocks closed flat as Asia shares staged an afternoon comeback to partially recoup losses.

But the culture of fear pervading global markets is hard to shake: Investors are afraid more companies could succumb to the global crisis that forced the U.S. to bail out the troubled insurer American International Group, deemed 'too big to fail'.

'It's a complete collapse of confidence,' said Francis Lun, general manager of Fulbright Securities Ltd in Hong Kong.

(snip)

Japan's three megabanks fell hard: Mizuho Financial Group, Inc. sank 7.2 per cent, Mitsubishi UFJ Financial Group, Inc. shed 4.6 per cent, and Sumitomo Mitsui Financial Group retreated 7.4 per cent.

Macquarie Group Ltd., Australia's biggest investment bank and securities firm, lost 16 per cent.
All down: A Japanese businessman talks on a cell phone beside a Nikkei stock index board, in downtown Tokyo today

All down: A Japanese businessman talks on a cell phone beside a Nikkei stock index board, in downtown Tokyo today

Leading China lender Industrial & Commercial Bank of China Ltd, or ICBC, fell over 5 per cent in Hong Kong.

In currencies, the greenback was trading lower against the yen at 104.48.

In Japan, the benchmark Nikkei 225 stock index was down 3.2 per cent at 11,375.57 after sinking to a new intra-day low for the year during the morning session.

Hong Kong's blue-chip Hang Seng Index tanked 847.54 points, or 4.9 per cent, to 16,805 points. Markets in South Korea, Australia and mainland China also were sharply lower.

Russia yesterday halted stock and bond trading on the country's MICEX and RTS exchanges as investors and dealers desperately liquidated positions for cash. It was not clear when the exchanges would open again.

Central banks in Japan and Australia pumped another $17 billion into money markets to prevent banks of hoarding cash amid an environment of distrust and uncertainty.

http://www.dailymail.co.uk/news/worldnews/article-1057477/Asian-markets-tailspin-investors-run-cover-amid-complete-loss-confidence.html