HONG KONG (MarketWatch) — Asian indexes dropped sharply early Wednesday in the wake of Wall Street’s losses on problems in U.S. credit markets. Financial shares continued to lose ground across Asia, led by those of Mitsubishi UFJ Financial Group and Sompo Japan Insurance in Japan, and Macquarie Bank in Australia. Japan’s Nikkei 225 index dropped 1.5% to 16,588.54, while the broader Topix index slid 1.8% to 1,607.97. Australia’s S&P/ASX 200 declined 1.4% to 5,880.20 and New Zealand’s NZX 50 index lost 1.4% to 4,007.40. South Korean markets were closed Wednesday for a national holiday. Tuesday, the Dow Jones Industrial Average finished 207 points lower at 13,028, after a futures broker moved to stop withdrawals due to a credit squeeze, while mortgage lender Thornburg Mortgage Asset Corp. saw its shares slide 46% after saying it faced margin calls and liquidity pressures.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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