Asian markets have started Monday’s session with losses after Friday’s sell-off amid news of action by governments and Central Banks in order to soften the effects of the crisis. Japan’s Nikkei stock market, has dropped on Monday to its lowest level since 1982 amid fears of government action not being enough to tackle recession. The situation is not much brighter in Japan, and the government has promised to take measures in order to prop up stock markets and weaken the Yen, which has appreciated strongly in the last couple of weeks, a serious threat for Japanese economy, heavily dependant on exports.
The Bank of Koreas has cut interest rates by 0,75% to 4.25, the largest rate cut ever, which gave a slight impulse to the stock market, although it dropped 2.4% shortly afterwards. South Korean Kospi Index dropped 10.6% in Friday’s session. In Australia, the Central Bank took action on Friday to support its currency, which stands now at historically low levels.