HONG KONG — Asian stock markets fell today, with benchmarks in Hong Kong and South Korea off about 3 percent, as renewed financial fears sent banks across the region tumbling.
Every major market retreated with the previous day’s news that Japan’s recession deepened amid the global economic downturn still weighing on investors. Crude-oil prices fell below $37 a barrel, though the dollar strengthened against the yen.
Banks and insurers were in the spotlight amid concerns there was more pain ahead for the global financial industry.
In Britain overnight, fears mounted that Lloyds Banking Group might be nationalized after the firm Friday reported larger-than-expected losses at recently acquired Halifax-Bank of Scotland. Meanwhile, the cost of protecting against defaults on bank debt in Japan and elsewhere rose.
Japan’s Nikkei 225 stock average sank 1.5 percent, Hong Kong’s Hang Seng dropped 3 percent, and South Korea’s Kospi lost 2.8 percent.
