RPT-GLOBAL MARKETS-Asia stocks slide as financial crisis worsens

From:http://www.industry-raw-materials.com/
Tag:Asian stocks,financial sector,Equity markets,Nikkei

HONG KONG, July 29 (Reuters) - Asian stocks fell sharply on Tuesday, after Merrill Lynch, the third-largest U.S. investment bank, said it would take a $5.7 billion write down related to bad debt, draining confidence in the unstable financial sector.
Coming a day after one of Australia's top banks said it would write down more than $1 billion in credit-related losses, the news increased fears that a year-old financial crises that knocked global stock markets into bear market has further to run.
Worries that financial sector troubles will further undermine the global economy kept the U.S. dollar trading below Monday's one-month high against the yen. Gold prices rose for a fourth day and Japanese government bonds climbed, pushing the benchmark 10-year yield down to the lowest in three months.
"Equity markets are capitulating on expectations of a deepening of the global banking crisis. Asian and emerging markets are experiencing capitulation due to risk aversion," Sean Darby, chief Asia strategist with Nomura in Hong Kong, said in a note to clients.
Japan's Nikkei share average .N225 fell 2 percent, weighed by shares of high-profile exporters, such as Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) and Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz), as investors continue to punish companies dependent on overseas demand.