Updated from 12:19 a.m. EST
NEW YORK ( TheStreet) -- Stocks in Asia closed lower Friday after President Obama announced a plan to rein in the risk-tasking for banks.
The declines in Asia follow the drop for U.S. markets Thursday. The Dow Jones Industrial Average dropped by 213 points, or 2%, to 10,390. The S&P 500 dropped 22 points, or 1.9%, at 1116, and the Nasdaq declined by 26 points, or 1.1%, at 2266.
Obama said Thursday his administration would work with Congress to ensure that any financial institution that contains a bank doesn't "own, invest or sponsor" a hedge fund, private-equity fund or proprietary trading desk "unrelated to serving customers." The president also said he would work to limit consolidation in the banking industry, which some believe has made certain institutions "too big to fail."Big U.S. banks took it on the chin Thursday. Bank of America (BAC) lost 6.2%, Citigroup (C) declined 5.5% and JPMorgan Chase (JPM) fell 6.6%. Bank stocks in Asia, like their U.S. counterparts, fell. In Tokyo, the Nikkei 225 stock average tumbled ended down 2.6% to 10,590.55. The Hang Seng index in Hong Kong finished with a decline of 0.7%, while China's Shanghai benchmark index dropped almost 1%. Stocks in Europe were mixed in the first hour of trading. London stocks rose slightly. Premarket futures in the U.S. suggested stocks would open higher on Wall Street Friday. -- Reported by Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV