Fears about the outlook for the world economy have overtaken

"Sentiment is deteriorating very fast. People are losing what little confidence they have on a day-by-day basis," said Jacky Choi, a Hong Kong-based fund manager at Value Partners Ltd., which manages about US$5 billion in Asia. "Everyone is very worried about the economy in the U.S and around the world."

In New York Wednesday, the Dow Industrial average ended down 733.08, at 8,577.91 — the biggest percentage drop since the 8 percent drop on Oct. 26, 1987, which followed Black Monday, the Oct. 19 crash that sent the blue chips down 22.6 percent in a single session.

The massive selling accelerated as the U.S. Federal Reserve Chairman Ben Bernanke warned in a speech Wednesday that patching up the credit markets won't provide an instantaneous jolt to the economy.

Oil prices continued to fall. Light, sweet crude for November delivery slid to US$73.

European markets sank Wednesday, with Britain's FTSE 100 index dropping 7.2 percent to 4,079.59, while Germany's DAX ended down 6.5 percent at 4,861.63

In Latin America, too, stocks plunged. Brazil's Ibovespa stock index sank 11.4 percent to 36,833. The sell-off triggered an automatic 30-minute suspension of mid-afternoon trading. Argentina's Merval index plunged 12.2 percent.