What a ride!!!

Global stocks fell to a 15-month low on Tuesday, pinning Asian stocks near a 16-month low, as investors shed riskier assets on growing doubts over Greece's ability to avoid default, fuelling fears of global financial turmoil and recession.



Fears over the banking sector's exposure to euro zone sovereign debt and plummeting value of assets across the board further led to a sharp widening of credit default swaps.

Weakening outlook for industrial demand weighed on copper and oil while flight-to-safety strengthened gold, yen and the dollar.

"Investors are cutting their exposure to risk as the most extreme risks -- such as Greek default -- are looming closer than they expected," said Jung Sang-jin, a senior fund manager at Dongbu Asset Management.


MSCI's broadest index of Asia Pacific shares outside Japan .MIAPJ0000PUS fell 1.58 percent, hovering near a 16-month low hit in late September. It fell about 3.6 percent on Monday.

The MSCI All-Country World index .MIWD00000PUS fell 0.52 percent to its lowest level since July 2010, adding to declines on Monday when bank shares were battered, with Franco-Belgian financial group Dexia (DEXI.BR) calling an emergency board meeting after concerns about its exposure to Greece.


Japan's Nikkei markets/index?symbol=jp%21n225">.N225 fell to a 6- month low as a sell-off in commodities pushed trading houses lower and the Greek woes pressured the financial sector.

"We could be in for a shakeout even larger than the Lehman shock," said Hideki Amikura, forex manager at Nomura Trust Bank.

The massive selling pressures prompted some authorities to step in to help restore some order.


The Korea Exchange temporarily suspended programme sales on the main Korea Composite Stock Price Index finance/markets/index?symbol=kr%21kspi">.KS11 in early trade on Tuesday due to drastic falls in futures as the broader market tumbled more than 5 percent.


Taiwan state funds were seen stepping in local market to prop up heavyweights such as Taiwan Semiconductor Manufacturing Co (2330.TW), the world's top contract chipmaker, helping the market erase earlier losses to trade flat.