FXstreet.com (Barcelona) - Asian stock indexes have dropped sharply on Tuesday on recent news about the financial turmoil in the United States and Europe, which have weighed on Bank shares, and European currencies.
Royal Bank of Scotland has forecasted a $41 million year loss in 2008, the largest deficit in UK history, which has hammered Banks stocks across Asia. Shares of HSBC have plunged in Hong Kong. The Hang Seng Index, has dropped 3.8% in early trade.
Tokyo Nikkei Index has lost in Tuesday all its Monday gains falling 3.1% by mid-afternoon, with financials taking the worst part on the decline. Mizuho Financial Group, one of the largest lenders has lost 5.8%, and Nomura Holdings dropped 4.0%. On the positive side, the Japanese food and beverage giant, Kirin Holdings, has rising 1.1% after the announcement of negotiations to purchase a 43.3% stake in San Miguel holdings.
European currencies have been hit by bad news. The Euro has fallen to a month low against the Dollar, tumbling to 1.3003 in Asian session, while the Sterling has reached its lowest level since 2002 at 1.4264.