Japan’s benchmark Nikkei trading index has fallen almost five percent in early trading hours after the financial bail-out plan was thrown out by Congress.
US markets plummeted earlier in the day with the Dow Jones sliding 778 points in its biggest ever one-day points fall, wiping six billion euros in market value from American equities.
In Europe, the fall on the FTSE 100 – which closed at 4,818.8 – was its biggest one day drop since January, with some bank shares losing more than ten percent of their value.
Germany’s DAX and France’s CAC 40 plunged by five percent and 4.2 percent respectively.
But the partial nationalisation of banking and insurance giant Fortis meant Belgium’s Bel20 was worst hit, closing down eight percent.
Experts are predicting a rough ride for the markets as they open this morning.