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 5 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 8 percent.
Experts are predicting a rough ride for the markets as they open this morning.