Asian, European markets slide further down

Bangkok: Most Asian and European markets slid into the red on Wednesday as weak earnings from financial firms, lower commodity prices and concerns about ailing US automakers reinforced pervasive gloom about the global economy.

Japan's benchmark Nikkei 225 average fell 55 points, or 0.7 per cent, to 8,273.22 as investors digested a 64 per cent slump in first-half earnings at the country's biggest bank, Mitsubishi UFJ Financial Group Inc.

In Australia, a major resources producer, the main index fell 0.7 per cent as crude oil traded near a 22-month low and metals prices fell overnight. Hong Kong's Hang Seng index declined 0.8 per cent to 12,815.80.

China bucked the trend with the Shanghai Composite Index surging 6.1 per cent to 2,017.47 as market heavyweight Petrochina rallied on expectations the government will allow fuel prices to be hiked next month.

A late-session rally on Tuesday on Wall Street, which pushed the Dow Jones Industrial average up 151.17 points, or 1.8 per cent, to 8,424.75, failed to spur much enthusiasm in beaten-down Asian markets.

"It's looking pretty miserable at the moment," said Song Seng Wun, head of research at CIMB Securities in Singapore.

"The question is how low the markets can go and whether previous bear market benchmarks such as the Asian financial crisis or the tech bubble are a reliable guide," Song said. "At this juncture, the safest bet is to be as defensive as possible, to find some where to take shelter and to wait and see."

In Europe, London's FTSE 100 Index was down 2.4 per cent in opening trade, France's CAC-40 fell 2 per cent and Germany's DAX slipped 1.6 per cent.

US stock index futures were down, suggesting Wall Street would open lower on Wednesday. Dow futures were down 111 points, or 1.3 percent, to 8,386 and S&P 500 futures were down 13.6 points, or 1.6 per cent, to 853.5.