The New Zealand sharemarket fell 3.18 per cent yesterday as markets in the Asia/Pacific region tanked again.
In Australia, the S&P/ASX200 closed down 4.37 per cent at 3974.4 after commodity prices tumbled to a four-year low.
Australian fund manager Perpetual yesterday froze seven funds containing A$2 billion. Twenty
four funds with A$14.4 billion in savings have now frozen redemptions in a backlash over the Rudd Government's bank deposit guarantee.
Investors had been pulling their money out of the funds in droves because they are not covered by the guarantee. Those affected include Australia's largest mortgage trust provider Challenger which has a A$2.9 billion fund.
Japan was hit by a dramatic selloff as fears about recession in the United States hitting export earnings took hold, pushing the Nikkei down to its lowest level in 5 years at one point.
However a report that the US administration may consider a US$40 billion proposal to help forestall foreclosures sparked a late-rally and the index ended down 2.5 per cent at 8460.98.
Investors in Japan are worried the US economy, a vital export market, is sliding into a recession.
South Korea's Kospi fell as much as 10.3 per cent during the session, with another steep slide in the won. The Kospi has slid 45 per cent this year.
Hong Kong's Hang Seng Index dropped below the psychologically-crucial 14,000-point level for the first time since July 8, 2005.
The territory's interbank offered rate, Hibor, for three-month loans rose slightly to 3.24 from 3.14.
Credit markets have been thawing in the past week despite market volatility.
In New Zealand the Reserve Bank's unprecedented 100 basis point cut in the official cash rate couldn't stop the benchmark NZX-50 index closing down 92.059 points, or 3.18 per cent, at 2807.34 - but it probably helped the market avoid more excessive losses.
- AGENCIES
