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Asian markets plunge on fears crisis is spreading

Japan's benchmark Nikkei 225 average was down 4.4 percent to 10,452, while Hong Kong's Hang Seng index slid 3.7 percent to 17,198.

Markets in mainland China, Australia, South Korea, Singapore and Thailand also fell sharply. Indonesia's key index plunged more than 5 percent.

Traders were spooked by Germany's announcement Sunday of a new bailout package totaling 50 billion euros ($69 billion) for Hypo Real Estate, the country's second-biggest commercial property lender, part of a scramble by European governments to save failing banks.

On Sunday, Belgian Prime Minister Yves Leterme said that France's BNP Paribas SA had committed to taking a 75-percent stake in troubled bank Fortis NV. British treasury chief Alistair Darling also said he was ready to take "pretty big steps that we wouldn't take in ordinary times" to help the country weather the credit crunch.

A dismal report Friday on the U.S. job market also added to the gloom, raising concerns about weakening American consumer demand for Asian exports.

"This credit crunch looks like it's not going away any time soon," said Alex Tang, head of research at brokerage Core Pacific-Yamaichi in Hong Kong. "Apart from a credit crunch in Europe, investors are quite concerned about the worsening outlook on the U.S. economy."

"We haven't seen any positive developments in Europe or the U.S., apart from the rescue plan," Tang said. "But even with the rescue plan, investors are focused on the slowing economy."

Concerns about fallout from the crisis overshadowed any investor optimism over the U.S. House of Representatives' approval Friday of a massive bailout plan that will allow the U.S. government to buy distressed mortgages and securities backed by mortgages from banks and other financial institutions.

U.S. stock index futures were more than a percent lower, suggesting Wall Street was in for another slide when trading opened Monday morning. On Friday, the Dow Jones industrial average fell 157.47, or 1.5 percent, to 10,325.38.

In currencies, the dollar rose against the euro, which slid to $1.3618 from $1.3774 late Friday, but declined to 103.11 yen from 105.30 yen Friday.

Oil prices tumbled on speculation that slower global growth will cut crude demand. Light, sweet crude for November delivery was down $1.85 to $92.03 a barrel in Asian electronic trading on the New York Mercantile Exchange.