World stocks drop

A fall in world stocks was recorded yesterday, following warnings by G7 financial ministers about the US economy, according to AFP reports.

Asia recorded large losses, after the alert that the global economy faced ongoing threats from the US subprime crisis. Hong Kong’s benchmark index closed down 3.6 percent; while Tokyo, China, and Taiwan were closed for public holidays.

"Investors remained cautious as they worried that a recession in the US will hurt global economic growth and affect China as well," says Castor Pang, Sun Hung Kai Financial investment strategist. "A weaker global economy and slower ChinaChina and Hong Kong markets." growth mean weak first-quarter earnings. Weak corporate earnings mean weaker

European losses were modest in comparison.