World

Nikkei plunges 9.4 percent, biggest one-day fall since '87

by mtippett | October 8, 2008 at 12:05 am

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Today it is Asia's turn to get battered in the markets.

TOKYO (Reuters) - The Nikkei average plunged 9.4 percent on Wednesday, its biggest one-day drop since the 1987 stock market crash, as fear spread of a global recession, fueled by expectations of a slide in profits at Toyota Motor Corp (7203.T) and a firmer yen.
Panic over the fast-spreading financial crisis dragged down markets across Asia, with Japanese steelmakers such as Nippon Steel Corp (5401.T) sliding, as the Nikkei set another five-year closing low. It has lost 19 percent in the past five days.

With Iceland on the brink and banks here in the UK calling on the government for protection against nervous depositors there is plenty of fear in the markets. The hope is that quick action from the British government will alleviate some of those concerns and take the edge off the negative sentiment that is gripping world markets.