Asian stocks dive as panic erupts over financial crisis

Asian stock markets went into a tailspin on Friday, with Tokyo down more than 10 percent as fresh panic erupted over fears that authorities are unable to contain the global financial crisis. Tokyo dived more than 11 percent as investors took fright at news that Yamato Life Insurance will file for bankruptcy protection, becoming the first Japanese insurer to go bust amid the global credit crisis.

The bloodbath quickly spread to other markets. Sydney plunged 6.5 percent, Singapore lost more than seven percent, Seoul was down 7.5 percent and Shanghai opened 3.8 percent lower. Hong Kong followed, opening down 7.7 percent.

"It's beyond panic," Oh Hyun-Seok at Samsung Securities told Dow Jones Newswires. "Concerns about the global economy are deepening further and there is no signs of easing in the global credit crunch."

The Bank of Japan pumped 3.5tn yen ($35.5bn) into the money markets amid the turmoil in Tokyo, while the stock exchange briefly halted some trading in futures and options.

The dollar tumbled to 98.43 yen, down from 99.50 overnight in New York as investors fled risky assets.

Analysts said markets, which sustained huge losses on Wednesday, were still being driven by fear and panic in the midst of a global banking crisis that showed few signs of easing.

The Dow Jones Industrial Average plunged 7.33 percent Thursday as jitters intensified over the global financial crisis.

General Motors tumbled 31 percent to $4.76 after Standard and Poor's raised questions about the auto giant's liquidity.