Asian markets started to decline from the opening bell, following the negative momentum set during the U.S. session. The banking sector and the commodity shares saw the biggest declines from the last few trading sessions.

All Asian markets opened for trading declined at a strong pace tonight. Investors fear that the global recession might not be over, after Bank of America said in its quarterly earnings that it put aside more funds to cover future losses. However, despite this BofA had a very strong quarterly report since it reported revenues of $36 billion, while its earnings exceeded all of 2008. It appears though the financial sector also led the declines in the Asian markets tonight.  

“The market does not like to hear any bad news coming from the financial sector,” Trade Team said. “Even though the quarterly results were relatively good, the fact that the bank prepares itself for another round of write-downs/losses made the market a little anxious. Bank of America tumbled 24% on Monday,” they added.

Commodity stocks posted strong declines during the Monday trading session as well. Negative U.S. futures drove down crude oil and other raw materials. “The outlook of the global economy became bleak once again yesterday, so this had a direct influence in the commodity market.” said. “Until the global economy sets its path towards the recovery phase, commodities are unlike to move too high.”

Overnight, the Nikkei declined 273.90 points (3.07%) to 8,650.82. The Australian S&P/Asx declined 90.60 points (2.40%) to 3,678.40. 

Crude oil for May delivery was recently trading at $45.80 per barrel, down by $0.20.

Gold for May delivery was recently trading up by $1.10 to $888.30.