Asian stock markets tumble again

Asian shares have tumbled again at the start of the week, as worries about the depth of the global slowdown continue to hit sentiment.

Japan's Nikkei 225 index fell 6.36% to its lowest close since October 1982 amid concerns at the yen's high value.

India's Sensex fell by more than 10% to below 8,000 before regaining some of its value in later trading.

In the Philippines, the main index fell 12.3%, as the country's second biggest bank announced hefty losses.

Shares of Banco de Oro Unibank lost almost a quarter of their value after it reported a loss of 1.3bn pesos ($26.8m; £16.8m) because of its exposure to the US investment bank Lehman Brothers.

One of the few exchanges rising was the Seoul market, which reversed early losses to close up 0.8% after South Korea's central bank cut its key interest rate from 5% to 4.25% at a rare, unscheduled meeting.

In Hong Kong, the Hang Seng was down 12.2% in afternoon trading.

India's Sensex was as one point at its lowest level since November 2005.

"There is more pain left. The global turmoil does not appear to be resolving soon," said Atul Mehra at the brokerage J M Financial in Mumbai.

Chinese shares were also lower, with the Shanghai Composite Index closing down 6.3% at its lowest level since September 2006.

Yen warning

Earlier on Monday the Group of Seven (G7) industrialised nations issued a statement warning that the strength of the yen was a threat to economic stability, which was taken as a threat of co-ordinated action to reduce the value of the currency.

While the yen briefly weakened, it soon climbed back towards Friday's 13-year high against the dollar.

The yen has been strengthening as a result of the end of the carry trade, in which traders borrowed the Japanese currency and used it to buy currencies with higher interest rates.

As the difference between Japanese rates and those elsewhere in the world has fallen, traders have been unwinding the carry trade, which means they have been using other currencies to buy yen, which has boosted the Japanese currency.

In other currency news, the Australian government intervened for a second time to support its currency, which was trading at a 5-year low against the US dollar. One Australian dollar was worth 0.6122 US dollars.

The Australian central bank last intervened more than a year ago and before that had not done so since 2001.

European shares are expected to follow their Asian counterparts and open lower, following on from their own hefty losses on Friday.