Asia stocks sink amid US recession fears

By CARL FREIRE, Associated Press Writer

Jan 21, Yahoo

TOKYO - Stock markets across most of Asia fell Monday following declines on Wall Street last week amid investor pessimism over the U.S. government's stimulus plan to prevent a recession.
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A contraction in the American economy would likely hurt profits at Asian exporters, although rising trade and investment within the region has made Asia less dependent on the U.S. economy than in the past.

Investors sold off shares, unimpressed by the economic stimulus plan President Bush announced Friday. The plan, which requires approval by Congress, calls for about $145 billion worth of tax relief to encourage consumer spending.

Japan's benchmark Nikkei 225 index slid 3.9 percent to close at 13,325.94 points, while Hong Kong's Hang Seng index was down 3.5 percent in afternoon trading at 24,323.44.

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photo: A man walks past the electronic board of a securities firm flashing the closing stock price of morning trading in Tokyo Monday, Jan. 21, 2007. Japanese stocks plunged Monday morning after Wall Street declined at the end of last week amid pessimism over the U.S. government's plans to forestall recession. The benchmark Nikkei 225 index lost 466.01 points, or 3.36 percent, to 13,395.28 points by the end of the morning session on the Tokyo Stock Exchange (AP Photo/Katsumi Kasahara)