Japan’s Nikkei index tumbled nearly 7% today as Asian markets plunged over spreading pessimism about the world economy.

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.

Halifax Bank of Scotland’s £4bn (€5bn) investor cash-call today looked doomed to be one of the biggest failed rights issues ever, despite shares rallying as banks soared higher.

The embattled banking sector fought back from hefty falls on the London market today as the US Federal Reserve sought to offer reassurance over America’s troubled financial sector.

Barclays Plc may be close to securing a 100bn yen (€594m) capital injection from Japan’s Sumitomo Mitsui Banking Corp. as part of the bank’s efforts to weather the impact of the global credit crisis, according to media reports.

Barclays is close to sealing a £470m (€596m) capital injection from Japan’s third largest bank as it seeks to boost its funding, according to reports today.