Updated on
Summary World stocks sank sharply, racking up a 20 percent loss since early May.
Focus was on a meeting of the US Federal Reserve later in the day, with investors likely to scour for hints about any new monetary stimulus programme with fears of a new global downturn growing.Higher-than-expected inflation data from China added to investor concerns, with the United States slowing and its credit rating downgraded, and Europe reeling under a debt crisis.Large parts of London have been damaged after three nights of riots, looting and arson by masked, hooded youths that wrecked shopping streets in many parts of the capital and spread to other cities.The losses on Wall Street weighed heavily on Asian markets with Japans Nikkei Stock Average falling 2.6%, while South Koreas Kospi Composite fell 4.4%. Hong Kongs Hang Seng fell 4.2%, while Chinas Shanghai Composite shed 0.4%.
