Asian markets plunge after huge Wall Street losses

TOKYO (AP) -- Analysts say they wonder if there is a bottom as stocks in Asia freefall.

The big decline is being led by Japan's main index, which is off by more than ten percent amid escalating fears of global recession. Coordinated interest rate cuts by central banks around the world and the $700 billion U.S. bailout have been ineffective so far.

Markets in Hong Kong, Australia, South Korea, Thailand and the Philippines were all down more than 7 percent. Shanghai's index was down 3.8 percent.

Indonesian authorities suspended trading indefinitely on the Jakarta Stock Exchange.

It all follows a major seloff Thursday on Wall Street.

Stocks stage late-session swoon, below 9K

NEW YORK (AP) -- A late session plunge was seen for the stock market, taking the Dow well below the 9,000 level.

The move came on the one-year anniversary of the record highs last seen for the Dow and the S&P.

The Dow stands at 8,579 after a loss of 7.3 percent or about 679 points.

The S&P dropped 75 points to nearly 910.

And the Nasdaq was down 95 points to 1,645.

Shares of General Motors Corp., one of the 30 stocks that make up the Dow, tumbled to their lowest since 1950.

Credit also remained clogged. The London Interbank Offered Rate -- a key benchmark for the loans banks make to each other so that they can lend to businesses and people -- rose, signaling that banks remain hesitant to extend credit out of fear they won't be paid back.

On the economic calendar today, the Commerce Department reports on the August trade balance, expected to post a decline.

Financial turmoil, weaker sales batter GM shares

NEW YORK (AP) -- After a bleak day on Wall Street, investors are tracking General Motors to see if it crumples under pressure.

The automaker's shares lost nearly a third of their value Thursday, tumbling to their lowest level in nearly 60 years. The fall followed Standard & Poor's Ratings Services announcement that the automaker's credit could fall further into junk status, making it even tougher to borrow money.

One analyst calls the warning "shooting at the life boats." GM had $26 billion worth of liquidity at the end of June. But it has been burning through cash at a pace of more than $1 billion a month and needs about $11 billion to $14 billion on hand to keep operating.

The chairman of the Center for Automotive Research in Ann Arbor says a takeover is possible except for one thing -- lots of debt.

J.D Power reduces auto sales outlook

NEW YORK (AP) -- The auto sales outlook, already grim, has gotten worse.

J.D. Power and Associates has cut its U.S. vehicle sales predictions for this year and next. It says that tough economic times and tight credit markets are prompting even more people to put off buying a new car or truck.

The consulting company firm now expects 2008 vehicle sales to total 13.6 million. That's down from its previous prediction of 14.2 million. The company cut its 2009 prediction to 13.2 million units from 14 million.

Those figures compare to 2007 sales of 16.1 million units.

An official says the reduction reflects the availability of credit and leasing, along with general economic stress.

Retailers see dismal results

NEW YORK (AP) -- Mall-based clothing chains are the latest to provide evidence that American consumers are avoiding non-essential purchases.

Even TJX Cos. -- which offers discounts on designer brands and had been one of the few bright spots in apparel selling -- was not immune to the distress. The Framingham, Mass.-based retailer, which operates such chains as T.J. Maxx and HomeGoods, lowered its profit outlook as it reported an unexpected drop in sales at established stores.

Others such as Gap Inc., Abercrombie & Fitch Co. and Chico's FAS Inc., which had been mired in a sales slump for months, reported double-digit same-store sales declines. Same-store sales are sales at stores opened at least a year and are considered a key indicator of a retailer's health.

The reports came a day after many major retailers, including Wal-Mart Stores Inc., the world's largest retailer, Target Corp. and department stores such as J.C. Penney Co. and Saks Inc. reported their September results on Wednesday. Many retailers reported a day earlier than usual because of the Yom Kippur holiday Thursday.

Banks borrow record amount from Fed

WASHINGTON (AP) -- Fresh proof of the credit problems gripping the country.

Banks borrowed in record amounts from the Federal Reserve's emergency lending facility over the past week, while investment banks drew loans at a brisk -- though slightly lower -- pace.

The Fed's report says commercial banks averaged a record $75 billion in daily borrowing over the past week. That surpassed the old record -- a daily average of $44.5 billion -- logged in the previous week. On Wednesday alone, $98 billion was drawn, an all-time high.

For the week ending Wednesday, investment firms drew $134 billion. That was down from a record $147.7 billion in the previous week.

Squeezed banks and investment firms are borrowing from the Fed because they can't get money elsewhere. Skittish investors have cut them off, moving their money into safer Treasury securities. Financial institutions are hoarding whatever cash they have, rather than lend it to each other or customers.

CITIGROUP-WACHOVIA

Wells Fargo plans to buy Wachovia; Citi ends talks

NEW YORK (AP) -- Wells Fargo has emerged as the apparent victor in the battle for control of Wachovia. Rival suitor Citigroup broke off talks with Wells Fargo and federal regulators but is vowing to have its day in court.

While Citigroup says it plans to seek $60 billion in damages for breach of contract, it has decided not to challenge the Wells Fargo-Wachovia deal in court.

Wells Fargo said last night it had ended talks with Citigroup and was moving ahead to acquire all of Wachovia's banking and other operations. It said the deal would not require aid from the FDIC or any other government agency.

Wells Fargo says it expects the deal to be completed by the end of the fourth quarter. In a statement, Wells Fargo Chairman Dick Kovacevich calls the deal "an incredible fit."

Crude heads lower

SINGAPORE (AP) -- Oil prices plummeted to a one-year low below $83 a barrel Friday in Asia as investor fears of a severe global economic downturn sparked a panicked sell-off of equities and crude.

Light, sweet crude for November delivery was down $4.35 to $82.24 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore, the lowest since October 2007. The contract overnight fell $1.81 to settle at $86.62.

One analyst says "the whole market has lost confidence in everything."