THE GUARDIAN: In Japan, the Nikkei was driven down by 7% to its lowest level for 5 years / Gloomy US company news add to London nerves
Stockmarkets across Asia have suffered fresh falls following yesterday's steep losses in the US and Europe, as the FTSE 100 fell through the 4000-point mark again and Sony issued a shock profit warning.
Investors have been spooked by the prospect of a deep, prolonged global recession, with a string of large companies warning that their sales and profits will suffer as the downturn bites.
In Japan, the Nikkei was driven down by 7% at one stage in a burst of selling, hitting its lowest point since May 2003. It struggled back in late trading, closing 213 points or 2.5% lower at 8460.98.
After the Japanese market closed, Sony admitted that annual profits will be less than half its previous forecast, at ¥210bn (£1.3bn) down from ¥460bn. It said the strengthening yen has damaged exports, particularly of electronic devices and its PlayStation3 console and games, and also predicted lower sales of televisions, digital cameras and video cameras as the world economy slows.
The picture was also gloomy in South Korea, where the $130bn (£79.8bn) banking bail-out announced last week does not appear to have restored confidence. The composite index of South Korea's biggest companies plunged by 7.5%, with electronic trading having to be halted at one stage.
In London, trading was nervous and volatile following FTSE 100's 188-point drop yesterday. After climbing 37 points at one stage, the index lurched down by over 1% to 3991.29, down almost 50 points.
City confidence had also been undermined by a glut of negative news from America yesterday, which sent the Dow Jones index tumbling by 514.45 points to 8519.21, having been down nearly 700 points at one point in the trading session. >>> Graeme Wearden | October 23, 2008
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