asian stock market News today August 8 2011, Shanghai, Nikkei 225 stock average dropped

asian stock market News today August 8 2011, Shanghai, Nikkei 225 stock average dropped ; Asian stocks nose-dived Monday as the first-ever downgrade of the U.S. government's credit rating jolted the global financial system, reinforcing fears that the world economy is weakening.



Oil prices extended recent sharp losses, trading below $84 a barrel on expectations that weaker global growth will crimp demand for crude. The dollar was lower against the yen and the euro.



Among the major Asian markets, Hong Kong's Hang Seng tumbled 3.8 percent to 20,145.82 and South Korea's Kospi was down 3.8 percent to 1,869.45 after briefly diving nearly 7 percent. Japan's Nikkei 225 stock average dropped 2.2 percent to 9,097.56.



Futures pointed to losses on Wall Street when it opens Monday. Dow futures were off 260 points, or 2.3 percent, at 11,142 and broader S&P 500 futures shed 31.30 points, or 2.6 percent, to 1,166.10.



Banking shares were tainted by fears the sector could face heavy losses as the sovereign debt crisis in Europe continued to brew. Industrial and Commercial Bank of China, the world's biggest bank by market value, fell 4.2 percent. Port operators -- whose lifeblood of imports and exports would be at risk if the global economy goes bust -- were stung badly. Hong Kong-listed China Shipping Container Lines Co. dropped 9.7 percent.



Meanwhile, a strengthening yen, which makes Japanese products more expensive when they are sent overseas, slammed the country's powerhouse export sector. Hitachi Corp. dropped 4 percent. Sony was 3.8 percent down. Mazda Motor Corp. lost 3.1 percent.



Australia's S&P/ASX 200 index dropped 2.9 percent to 3,986.10. Singapore's benchmark dived 4.7 percent, Taiwan's market slid 3.8 percent and China's Shanghai Composite shed 3.6 percent.



The G-7 statement came after the group held an emergency conference call to discuss the debt crisis in Europe and market prospects following the announcement of the first-ever downgrade of the U.S. credit rating.



The European Central Bank, meanwhile, said it will "actively implement" a bond-purchase program that could boost Spanish and Italian bonds and drive down interest yields that threaten those countries with financial disaster.