By Moming Zhou, MarketWatch
SAN FRANCISCO (MarketWatch) -- Asian stocks are expected to fall Friday as renewed credit-related worries, which have slammed North American and European stocks, may again hit Asian markets.
September Futures for the Nikkei 225 Index /quotes/zigman/715506 JP:NIK +0.68% last traded at 16,810 on the Chicago Mercantile Exchange, down from Thursday's close of 17,220 on the Osaka Stock Exchange and 17,065 on the Singapore Exchange, indicating a weak start for their underlying index on Friday.
New Zealand's NZX 50 index was down 61.55 points, or 1.5%, at 4,098.88 in Friday morning trading.
U.S. stocks tumbled on Thursday, sending the Dow Jones Industrial Average down by nearly 400 points, as more credit-related anxiety was triggered after BNP Paribas, France's largest bank, said Thursday it has halted three funds with exposure to the U.S. credit markets.
The European stocks also tumbled on Thursday, pushing pan-European Dow Jones Stoxx 600 index down nearly 2%. See Europe Markets
To ease the credit markets on both sides of the Atlantic, the European Central Bank loaned 49 firms a total of nearly 95 billion euros ($131 billion), the most it has ever provided, and the Federal Reserve added another $12 billion in temporary reserves to the banking system through 14-day repurchases, double the amount added the prior week. Read more
The Bank of Canada followed suit, injecting C$1.455 billion ($1.3747 billion) into the markets to increase liquidity.
On Wall Street, the Dow /quotes/zigman/627449/delayed DJI -0.50% closed down 387.18 points, or 2.8%, to 13,270.68, the S&P; 500 /quotes/zigman/3870025 SPX -1.08% lost 44.4 points, or 3%, to 1,453.09, and the tech-focused Nasdaq Composite Index fell 56 points, or 2.2%, to 2,556.49. See Market Snapshot
Dow component American International Group Inc. /quotes/zigman/557836/quotes/nls/aig AIG -1.52% , the world's largest insurance company, fell 3.3% after it said residential mortgage delinquencies and defaults are climbing, signaling damage in the mortgage market could be expanding.
ADRs get slammed
The Bank of New York Asia ADR Index /quotes/zigman/627652 BKAS -0.97% , which tracks Asia's American Depositary Receipts, lost 3% to 158.36, the lowest since May 1.
The Japan ADR Index was down 2.1%., and the Australia ADR Index fell 4.7%.