As losses mount in the U.S., Japanese stocks are plunging to their weakest levels since 1985. The yen fell to a 20-month low against the dollar yesterday amid concerns the Japanese government will be unable to restore health to the country's sick economy. Adding to the weakness in the market, Japan's prime minister,

Yoshiro Mori

, who is widely blamed for the country's economic weakness, refused to resign as he was scheduled to do last weekend.

Asian markets were devastated again overnight, with the

Nikkei 225

sliding another 2.9% overnight to new 16-year low, and the

Hang Seng

falling 2.06% to a new 10-month low.

European investors were supporting a bounce in tech and telecom stocks near their midday. But a second day of losses in mobile phone titan

Ericsson

(ERICY)

and selling in old economy stocks was keeping the major European indices down. Londons's

FTSE

was down 86.5 to 5830.8. Across the channel, the Paris-based

CAC

was 80.5 lower to 5288.4 and the German

DAX

was losing 89.9 to 6114.5.

For more on Monday's after-the-bell action stateside, check out

The Night Watch.