| Emerging markets hit by flight from risk Emerging markets and their currencies sold off after a downward shift in risk appetite drove wary foreign investors into repatriating their funds  Asian shares fall as economic gloom deepens Japanese shares led Asia-Pacific markets lower as anxieties about the US economy and the global outlook heightened amid worsening data and the prospects for US carmakers Asian shares follow Wall Street lower Asia-Pacific shares followed Wall Street lower as significant job cuts, such as Citigroup's shedding of 52,000 positions, added to the bleak economic outlook S&P downgrades Turkey's credit rating Turkey could face increasing difficulty meeting its external financing needs, according to research by Standand & Poors, which revised its outlook on the republic from stable to negative Russian trading halted after 12% drop Worries about the Kremlin's interference in the economy combined with lower oil prices and uncertainty over the rouble combine to send Russian shares sharply lower Short-selling given share of blame The wave of shorting by hedge funds in recent months may prompt a backlash against foreign investment in the Gulf region, writes Robin Wigglesworth View of the Day: Russian rouble rousing The central bank's decision to raise interest rates is unlikely to prevent further falls in the Russian currency, says Neil Shearing at Capital Economics Karachi sees day of no trades Trading grinds to a halt for the first time ever on Pakistan's stock market in a sign of worsening fears over domestic political turmoil and the global financial crisis Kazakh banks agree $3.4bn bail-out Kazakhstan has agreed terms with the country's top four banks for a $3.4bn capital injection to help counter the impact of the global credit crisis Insight: Reality for emerging markets The echoes of the Asian financial crisis of 1997-98 are growing louder, writes John Plender Rouble weakens as Russia changes tack Russia's central bank let the rouble weaken to its lowest level since February 2007 as officials indicated that Moscow was abandoning its rigid defence of its currency Major Dubai developer cuts 200 jobs One of the largest private real estate developers in the Gulf said it would cut 200 jobs, news which would deepen concerns over the region's property market Risk of foreign exchange home loans Efforts to help the currencies of Hungary and Romania are hampered by the fact that most mortgages are in euros or Swiss francs Fitch downgrades four emerging markets Fears about the outlook for emerging markets were heightened on Monday when four countries saw their credit ratings downgraded because of the threat of global recession and the drying up of capital flows View of the Day: China tests market mettle Any revival in market confidence triggered by China's fiscal stimulus package will quickly be put to the test News Wizard |