Asian stocks hit on FTSE

Fears over emerging market economies continued to hit Asian powerhouses HSBC and Standard Chartered today as the wider FTSE market tumbled further on recession concerns.

HSBC lost 10% and Standard Chartered shed 8% coming after heavy falls on Friday as it became clear emerging markets are not immune to the global financial crisis.

The FTSE 100 Index plunged another 181.9 points to 3701.4 in mid-morning trading, coming after a 5% decline the previous session – taking the top-flight to lows not seen since the last Gulf War in 2003.

Overnight declines across Asia put stocks on the back foot, with Japan’s Nikkei 225 Index falling 6.4% to its lowest close since 1982. Hong Kong’s Hang Seng tumbled 13%.

Europe indices were also lower today. The Cac 40 in France lost 7% and Germany’s Dax fell 5%.

The sharp declines came amid another round of government measures to boost markets. South Korea’s central bank slashed its key interest rate today by 0.75% - its biggest cut ever – to prevent Asia’s fourth-largest economy from lurching into recession.

Australian and Hong Kong central bankers also injected funds into their markets to ensure liquidity.

Today’s declines in London hit banks and insurers particularly hard, with Norwich Union parent Aviva among the worst off, down 11%, or 27.5p at 219.75p.

HSBC and Standard Chartered fell 67.75p to 628.25p and 64.5p to 693.5p respectively.

But HBOS and its white-knight merger partner Lloyds TSB were faring better today, ahead 4.8p at 64.7p and 6p at 171.8p respectively.

Housebuilders in the FTSE 250 meanwhile rose strongly after upgrades from Merrill Lynch offset Persimmon’s news of a further £600 million in landbank writedowns as house prices continue to fall.

Persimmon gained 6.25p to 223.5p, as it also said full-year results would be in line with expectations, but Barratt Developments was the biggest second tier riser, up 5.25p at 55.75p – a 9% gain.

Automotive and aerospace engineer GKN meanwhile plummeted 29%, or 33.75p to 83.75p after it warned over profits and announced plans to cut its global workforce and shut down plants.