Global stocks slump over US plan

Shares across most of the Asian markets closed deep in the red while European bourses were in the negative territory in early trading hours. Obama on Thursday pitched for new restrictions on the size and scope of financial entities to limit their increased risk-taking ways.

The move sent US shares into a tailspin. The investor sentiment seemed to be further dampened by concerns that China could resort to a tight monetary policy, after seeing robust economic growth in the December quarter.

Japanese benchmark Nikkei 225 shed over points or 2.56 per cent to end the day at 10,590.55 points. South Korea’s key Kospi index tumbled 2.19 per cent to 1,684.35 points.

Moreover, Singaporean and Indian markets declined over one per cent. While Straits Times Index declined to 2,819.71 points, Sensex shed 191 points to 16,859.68 points.
China’s key Shanghai SE Composite IX slumped nearly three per cent to 3,128.59 points, a day after the nation announced that its GDP grew 10.7 per cent in last three months of 2009.

European shares began on a shaky note in morning trade. Key indices including UK’s FTSE 100, slipped marginally.

US stocks on Thursday took a beating, with the Dow Jones Industrial Average plunging two per cent to 10,389.88 points. The tech-heavy Nasdaq Composite and the broader S&P 500 indices fell more than one per cent.

The market completed its four-day losing string, by crashing over 781 points or 4.43 per cent in these days.

Stocks across the globe tumbled on Friday following sharp fall on the Wall Street on Thursday.

Smart recovery from lower levels in the top heavyweight and petrochem giant Reliance Industries following higher Q3 performance helped the Sensex recovery to some extent, a broker said.

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