Asian stocks plunged Friday on news that a $14 billion bailout of U.S. automakers collapsed in the Senate after the United Auto Workers refused to accede to Republican demands for swift wage cuts.
Japan's Nikkei 225 stock average fell 4.1% to 8361.27, while the Hang Seng index in Hong Kong fell 6.9%. The S&P/ASX 200 index in Australia declined 2.4%.
The rescue of U.S. automakers collapsed late Thursday night after bipartisan talks broke down over GOP demands that the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.
Auto stocks in Asia plummeted on the news. In Tokyo,
dived 10.6% and
slid 12.9%. South Korea's
shed 8.5% and
was off 8.4%.
Premarket futures in the U.S. were indicating extremely weaker losses when Wall Street opens Friday.
Following some initial indecisiveness, stocks in New York fell Thursday as dismal job numbers, an unexpectedly widened deficit, and the federal bailout of automakers
weighed on investors' minds.
Dow Jones Industrial Average
tumbled 196.33 points, or 2.2%, to 8565.09. The
slipped 25.65 points, or 2.9%, to 873.59, and the
fell 57.60 points, or 3.7%, to 1507.88.
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