Press TV 
Tuesday, Sept 30, 2008
Major stock markets in Asia have tumbled dramatically across the board after Wall Street’s biggest drop since the crash of 1987.
The Tokyo Stock Exchange’s Nikkei-225 index has dropped nearly 5 percent today. Similar falls were also seen in other regional markets.
Australia and New Zealand saw similar losses, with the S&P/ASX-200 index shedding 5.3% in Sydney and a 4.7% fall in Wellington.
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Meanwhile, the Dow Jones index fell 7% and suffered its biggest ever one-day point fall, ending 778 down.
The US House of Representatives on Monday rejected a $700 billion plan seeking to rescue Wall Street.
US President George Bush is supposed to speak today in reaction to the representatives’ rejection of the bailout plan.
As the financial crisis spread, banks continued to collapse or be swallowed up by other institutions, both in the United States and Europe.
In the latest big agreement, Citigroup agreed to buy Wachovia Corp’s US banking operations for $2.2 billion.
Investors were stunned by the US lawmakers’ rejection Monday of a US$700 billion emergency rescue plan that would have allowed the government to buy bad mortgages and other sour assets held by troubled banks and other financial institutions.
But with elections in November, many US House representatives were reluctant to take the political risk of backing a measure that many American voters see as an unfair bailout for rich, careless investment bankers.
Republicans in the House, in particular, drew back at spending so much taxpayer money just before a presidential election.