Shares have fallen across Asia

Asian stocks have fallen, taking their lead from weaker US stocks, which have hit a fresh 12-year low.

In Japan, stocks dropped about 3% in early trading. Shares in Australia and South Korea are also lower.

China wholesale markets were hit by disappointment that China did not unveil new stimulus measures on Thursday and fears that General Motors might not survive.

Investors are also anxious ahead of the publication of unemployment figures in the US later on Friday.

The Dow Jones industrial average closed down 281.40 points or 4.09% at 6,594.44 on Thursday.

Japan woes

In Japan, exporters’ stocks tumbled early on Friday, amid fears that the strengthening yen would make their wholesale products uncompetitive.

Shares in Honda Motor, the country’s second-biggest car company, fell more than 4%.

Shares in Mizuho Financial Group, Japan’s second-largest bank, slipped nearly 4%, taking its lead from sharp falls in Citigroup stock in the US, which fell below $1 for the first time on Thursday.

US shares were knocked when auditors expressed "substantial doubt" that General Motors could stay afloat. Shares in the carmaker closed down more than 15%.

Wholesale investor hopes that China would expand its stimulus package had pushed markets higher earlier in the week, but shares fell around the world on Thursday when Premier Wen Jiabao failed to announced any expansion of the package.

"The market had also hoped to hear news from China on new stimulus measures for china wholesalers as it opened parliament yesterday, but nothing clearly came out," Kazuhiro Takahashi at Daiwa Securities SMBC told AFP.

Zhou Xiaochuan, China’s central bank chief, said on Friday that he saw signs of a recovery and that officials would act sooner rather than later to revive the economy.

BBC News