Wednesday, 24 December 2008
Global stock markets are falling Wednesday as investors react to more bad news about the U.S. economy.
Japan's key Nikkei index lost more than 200 points in Wednesday's trading. Key markets in Hong Kong, Mumbai, Seoul and Shanghai also posted significant losses. The sell-off extended to markets in London and Paris in the early morning session.
Trading is very light due to Wednesday's holiday observance (Christmas Eve), and a number of markets are closed, including the market in Frankfurt, Germany.
Shares of some of Asia's leading companies are leading the downturn. Japanese automaker Toyota lost 4 percent in the first day of trading since Monday, when it forecast its first operating loss in seven decades.
The U.S. government released figures Tuesday showing the nation's gross domestic product declined by a half-percent in the third quarter - July, August and September - of this year. The GDP adds up all the goods and services produced in the nation, and is an important measure of the economy's health.
Two separate reports issued Tuesday show the U.S. housing market remains in a steep decline, with sales and prices of new homes plunging to their worst marks in decades.
The current economic downturn started with problems in the U.S. housing market.
Vice President-elect Joe Biden told reporters Tuesday the incoming Obama administration and members of Congress are close to agreement on an economic stimulus package. The program is intended to boost the economy with government spending on roads, mass transit, and a tax cut for the middle class.
The economic crisis is hitting many nations besides the United States. British officials on Tuesday said the country's GDP fell six-tenths of a percent in the third quarter - the biggest drop in 18 years.
Some information for this report was provided by AP and Reuters.
