Japan's Nikkei 225 Index registered its biggest decline since the 1987 stock market crash, with the benchmark index falling 1089 points, or 11.4%, to 8,458. Wednesday's late-day slide in the US and concerns that Japan's economy is teetering on the brink of a recession were responsible for the massive sell-off. A Reuters' survey of manufacturing confidence showed that sentiment dipped to a six-year low. Comments from the country's prime minister that the US rescue plan may not be enough to fix what ails financial markets added to the gloomy mood. His comments were based on market weakness over the past couple of days. Separately, the Baltic Dry Index - a measure of shipping rates - fell to a 5 1/2-year low, suggesting that global growth is quickly moderating. Though the index is influenced by economic activity, new ships coming on line (increases in supply), also impact rates.
Schwab Center for Financial Research - Market Analysis Group
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