Asian stock markets resumed their downward slide Friday after Wall Street fell to its lowest levels in more than 12 years amid deepening fears about the fate of General Motors Corp. and major financial companies. European markets were mixed in early trade. The region's retreat marked a return to the selling that had gripped global equities markets until a brief rally earlier this week on hopes China would announced major new stimulus measures. Investors, already deflated after Beijing failed to deliver, were forced to grapple with a warning from General Motors that the struggling automaker may have to file for bankruptcy. Along with growing uncertainty about the financial system, the news led to yet another rout in US markets with banking stocks suffering some of the steepest drops. Citigroup Inc., stilling reeling despite billions of dollars in government aid, fell below $1 a share. “You can buy Citi at the 99 cent store now,” said Paul Schulte, a chief Asia equity strategist at Nomura International in Hong Kong. “It's nauseating. We keep grasping at straws to find hope, and the markets keep punishing us.” Investors in Asia were also holding back ahead of what is expected to be an especially bleak US employment report later Friday. Economists surveyed by Thomson Reuters/IFR predict the Labor Department will report that US employers slashed 648,000 jobs in February – more than the 598,000 cut in January. European markets mostly followed Asia lower in early trade. Britain's FTSE 100 gained 0.3 percent, Germany's DAX was down 0.1 percent and France's CAC-40 fell 0.4 percent. Wall Street was also headed for a weaker open as stock futures traded lower. Dow futures were down 31 points, or 0.5 percent, at 6,600 while S&P500 futures fell 2.8, or 0.4 percent, to 683.30. Earlier in the day, every major Asian market traded into the red, though the losses were somewhat more muted than the sharp declines in the US overnight. Japan's Nikkei 225 stock average fell 260.39 points, or 3.5 percent, to 7,173.10, while Hong Kong's Hang Seng shed 289.72, or 2.4 percent, to 11,921.52. South Korea's Kospi was off 0.3 percent at 1,055.03. Elsewhere, Shanghai's benchmark swooned 1.3 percent, Australia's stock measure was 1.4 percent lower and Singapore's key index shed 0.8 percent. China has become a growing source of hope for many investors, helping buoy sentiment in Asia at a time when the region's export-driven economies are hurting as demand dries up in industrial Western countries. A day after Beijing stopped short of announcing new stimulus plans, the government said Friday it sees signs economic growth is recovering and is watching closely to determine whether it needs to expand its huge stimulus effort. “It really depends on the changing situation to determine whether we need additional investment,” Zhang Ping, the chairman of the country's planning body, said in Beijing.
