Global Stock Markets Down Sharply

Associated Press reports:

TOKYO - Global stock markets extended their shakeout into a second day Tuesday, plunging amid worries that a possible U.S. recession will cause a worldwide economic slowdown.

The dramatic declines in Asia and Europe were expected to spread to Wall Street, where stock index futures were already down sharply hours before the trading day began.

Japan's Nikkei 225 index, the benchmark for Asia..., plummeted 5.7 percent to close at 12,573.05 on the Tokyo Stock Exchange, the lowest close since Sept. 8, 2005. In China, the Shanghai Composite Index fell 7.2 percent to its lowest close since early August.