Stock markets plunge amid fears of financial crisis

Dubai: World stock markets declined to their lowest levels on Friday amid fears of a growing financial crisis.

The yen, however, soared to a 13-year-high against the dollar at 95.32 and to a six-year peak against the euro at 123.

"The best word to describe what's going on right now is panic," said Credit Suisse strategist Satoru Ogasawara.

Japan's Nikkei index plunged 9.60 per cent, ending below the key 8,000-point level for the first time in more than five years.

India's Sensex closed down at 11 per cent, whileSouth Korean shares dived 10.6 per cent, while Hong Kong was down nearly 7 per cent in the afternoon session.

European markets also tumble following steep losses in Asia, with benchmark indexes in London, Frankfurt, Paris down around 5 percent.

London's FTSE 100 index of top shares dived by 3.09 per cent in opening trade on Friday to stand at 3,961.48 points.

In Latin America, the stock market in the region's biggest economy, Brazil, closed 3.57 per cent lower, extending Wednesday's loss of more than 10 per cent.

MSCI's all-country world index was down 2.8 per cent after earlier hitting a level not seen since August 2003. The dollar hit a two-year high against major currencies.