Shares fall after bail-out fails

Stocks fell sharply across Asia

European and Asian markets have fallen sharply on news the Senate has rejected the US carmaker bail-out package.
Japan's Nikkei share index fell 484.68 points, or 5.6%, to 8253.87, while Hong Kong's Hang Seng index sank 6.9%. Other regional markets also fell.
In Europe, shares were also down in early trading. The FTSE fell 2.7%, the Cac 40 fell 4.7% and the Dax fell 3.4%.
"It's a very bad sign. US stocks will likely nosedive," said Yasutoshi Nagai, chief economist at Daiwa Securities.
Stronger yen
Japanese carmakers were hit particularly hard as sentiment surrounding the auto sector deteriorated yet further following the rejection by Senate of the the proposed $14bn bail-out of Chrysler, Ford and General Motors.
Shares in Toyota, Honda and Nissan all falling by at least 10%.
Japanese exporters were also forced lower as the dollar sank to below 89 yen, a 13-year low.
The sharp drop in Asian shares has wiped out gains made during the last week.
"Investors used the botched US auto bail-out deal as an excuse to pocket the recent gains," Arch Shih at Taiwan Securities said.
The falls sparked reports that the Japanese government may increase its stimulus package, announced in October, to boost activity in what is Asia's largest economy.
It may also be forced to intervene to stop the yen strengthening further against the dollar.
"Without an intervention, the dollar could hit 85 yen, so Japan will likely intervene to prevent that from happening," said Masafumi Yamomoto at the Royal Bank of Scotland in Tokyo.