Asian stock falls on concerns of recession deepening

Asian stocks and U.S. futures slumped since yesterday after the U.K. widened a rescue plan for Royal Bank of Scotland Group Plc, sparking concerns that more companies will need bailouts as the global recession deepens. Europe’s Dow Jones Stoxx 600 Index slid 1.7 percent yesterday, led by RBS after it forecast a loss of as much as 28 billion pounds ($40 billion) this year. Futures on the Standard & Poor’s 500 Index fell 1.6 percent today, pointing to declines when U.S. markets reopen following yesterday’s holiday for Martin Luther King Day. Barack Obama’s inauguration later today as the 44th president of the U.S. will likely be a focus for U.S. traders.
The yen rose to a record against the pound and gained versus the euro on speculation credit-market losses will widen after the U.K. increased aid to banks, curbing demand for higher-yielding assets funded in Japan’s currency.
The British pound fell to the lowest level versus the dollar in more than six years on concern the U.K. government will have to take full control of Royal Bank of Scotland Group Plc after announcing a bank bailout. The Australian and New Zealand dollars slumped against the yen as financial stocks led a decline in Asian shares.
In world news today even as Barack Hussein Obama, 47, places his left hand on the Bible of Abraham Lincoln to take the oath of office on the steps of the U.S. Capitol, the Lincoln Memorial will be within his gaze.