Asian shares dropped on Wednesday, paralelling big losses on Wall Street on fears about an
intensifying crisis in U.S. mortgage lending that spooked
investors nursing losses from a sharp sell-off two weeks ago.
Japanese stocks fell 3 percent and other regional markets
dropped between 1.5 percent and 3 percent, mirroring falls in
U.S. stocks that were triggered by growing losses at subprime
lending firms — those operating at the riskier end of the home
loan market — and weak U.S. retail sales.
Asian markets have suffered greater than domestic markets during this recent decline. One or the most popular Asian ETFs, iShares FTSE/Xinhua China 25 Index (FXI) is now down close to 20% year-to-date.
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