FXstreet.com (Barcelona) - Asian markets are going trough sharp declines for second consecutive day, with investors pulling their money off risky assets on fears about Dubai's financial trouble. The Dollar has plunges lower against the Yen while it picked up against Euro and Pound.

Japanese Nikkei Index has dropped 3.2% while Hong Kong's Hang Seng Index declined 3.5% and South Korean Kospi Index slumped 4.9%. In China, Shangai Composite index sheds 2.0%.

Banks and financials stocks have declined fears about losses from their exposure to Dubai World. HSBC and

Standard Chartered, with considerable operations in the Middle East have dropped 6.1% and 5.8% respectively.

Dollar hits a fresh 14-year low against Yen

USD/JPY decline from 89.20 high on Monday has extended below Thursday's low at 86.30, reaching levels below 85.00 to hit a fresh 14-year low at 84.82, to pick up later and trade around 85.70 at the moment of writing.

EUR/USD has retreated lower from 1.5145, 15 month high hit on Wednesday, as the pair dropped during Asian session from 1.5020 high to test support level at 1.4900, which, so far, remains intact, with the Euro moving around 1.4920.

GBP/USD decline from 1.6730/45 week highs has extended during Asian session from levels around 1.6530 to 1.6350 low at the moment of writing; 1-03% below its day opening price, with the pair deep into overbought territory in hourly charts.