Global markets fall on US losses

BBC

Markets have faltered in Friday trading a day after markets in the US and Europe suffered heavy losses amid fears of a global credit crunch.

By the close of trade in Japan, the Nikkei share index was down 406.5 points, or 2.4%, at 16,764.1.

Japan's central bank followed the European Central Bank in pumping money into the market to boost liquidity.

And in London the benchmark FTSE 100 opened nearly 2% lower, having closed Thursday 1.9% down.

The Bank of Japan injected one trillion yen ($8.5bn; £4.2bn) into the financial system on Friday.

Global markets have been rattled by worries over financial institutions' exposure to bad credit in the US sub-prime mortgage market.

South Korea's central bank said it would also intervene if necessary in financial markets to counter the international turmoil.

Central banks in several countries have been intervening in the money markets to prevent a continuing problem with US housing loans turning into a global financial crisis. ..........