Wall Street sank further today, extending its heavy losses as enthusiasm over Federal Reserve efforts to inject confidence into credit markets gave way to concerns about financial companies’ balance sheets.

Asian stocks tumbled today, tracking declines on Wall Street as investors feared more companies could succumb to the global financial crisis that forced the US to bail out troubled insurer American International Group.

Asian stock markets partly recovered today after the US government announced a £47.2 billion plan to bail out troubled insurance giant American International Group.