Global Markets Skid on Wednesday

Domestic stocks are likely to face another challenging session tomorrow after Asian stocks slumped to their three-month lows on Wednesday and following cues from the US, which indicated a slowdown in consumer spending.Investors are just very, very worried about what’s happening with subprime and unwinding of yen carry trade.

South Korea’s Kospi was the biggest loser, skidding 7.3% to 1,685.12, as the stock market reopened for trading after a national holiday.

In Tokyo, the Nikkei 225 index  fell 2.6% to 16,047.46 by the end of the morning session, on top of Wednesday’s 2.2% drop.

Thursday, the U.S. dollar was quoted at 116.44 yen in Tokyo, compared with 116.81 in New York late Wednesday.
Japanese banking shares also fell after reporting losses related to the U.S. subprime-mortgage market.