Asian markets were slam in to losses after Group of Seven finance ministers approved that the global economic prospects have weakened and financial market losses will continue. As per the statement released by G-7 the world economy is facing the downside risks. The G-7 downgraded its outlook for the world economy from that of two months ago, blaming the U.S. housing recession, credit-market turmoil, high commodity prices and inflation pressures.
The G-7 statement put a concern over sharp fluctuations in major currencies its possible implications for economic and financial stability. Adding further the statement promised to continue monitoring the exchange markets closely.
The Nikkei 225 Average dropped 3.1% to 12,917.51, while the broader Topix index sank 2.5% to 1,246.24.
Hong Kong's Hang Seng Index gave up 3.5% to 23,811.20, after rising during the two previous sessions, while the Hang Seng China Enterprises Index tanked 5.2% to 12,664.21.
China's Shanghai Composite dropped 5.6% to 3,459.00 and Singapore's Straits Times Index fell 2.6% to 3,046.22.
Australia's S&P/ASX 200 index lost 1.8% to 5,342.40, South Korea's Kospi lost 1.9% to 1,746.71, New Zealand's NZX 50 index slipped 0.5% to 3,470.96 and Taiwan's weighted index fell 0.2% to 8,892.68.
In India the markets were closed on the account of public holiday.
In currency trading, the U.S. dollar was quoted at 101.14 yen, compared with 100.90 yen in New York Friday.
May crude-oil futures slipped as much as 43 cents to $109.71 a barrel in electronic trading, after rising three cents to settle at $110.14 a barrel Friday on the New York Mercantile Exchange.
In Europe shares dropped again on Monday, as below-forecast earnings from Philips Electronics and more weakness in the banking sector weighed on sentiment.
National indexes were in the red, with the German DAX 30 index down 0.9% to 6,544.38, the U.K. FTSE 100 index down 0.7% to 5,859.80 and the French CAC-40 index losing 0.6% to 4,767.90.
On the data release side U.Ks producer prices rose at the highest annual rate since 1991 on record increases in raw material costs, adding to the danger that faster inflation becomes embedded in the economy.
Prices at factory gates climbed 6.2 % from a year earlier, compared with 5.9 % in February, the Office for National Statistics said today in London. Raw material costs rose 20.6 % on the year, the most since records began in 1986. Producer prices rose 0.9 percent on the month, the statistics office said.
Industrial production has slowed down its growing pace in February, compared to that of January 2008.
According to the latest figures released by Eurostat, Industrial output has risen 0.3% in the countries belonging to the Euro Area in February, half of the 0.6% growing pace posted in January, which has been revised down from the 0.9% previously estimated.
Year on year, industrial production increased 3.1%, from the 3.3% increase posted on the previous month, also revised down from the 3.8% previously estimated.
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