Nikkei hits 26-year low as funds leave Asia

[Adsos Letter]

HONG KONG, March 9 (Reuters) - Japan's Nikkei average struck a 26-year low on Monday and other Asian markets slipped on worries about the fate of General Motors (GM.N) and U.S. banks, while the yen edged up in a slight reversal of its broad slide.

The drop in stocks, led by automakers and financials, sparked gains in the yen and government bonds. Oil prices jumped for a second day on expectations of more OPEC supply cuts.

Japan's broad TOPIX index touched a 25-year intraday low as the country's shares fare the worst among Asian markets, while the Shanghai Composite index .SSEC slid as investors locked in profits on blue-chip companies after a rally this year of nearly 20 percent.

In contrast, European indexes were set to rise at the start of trade, financial bookmakers said.

Asian stock markets have held up better than others in the United States and Europe on expectations that households and governments in the region have more scope to keep spending because they are less indebted.

http://www.reuters.com/article/marketsNews/idINSP47556720090309?rpc=44

[girl gone mad]

1. Little comfort considering..

that our government seems content to copy the failed Japanese model of quantitative easing and propping up zombie banks.