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| Dubai debt fears hit Asian shares | Dubai debt fears hit Asian shares |
| (41 minutes later) | |
| Worries over Dubai's debt problems have driven Asian share prices down sharply. | Worries over Dubai's debt problems have driven Asian share prices down sharply. |
| The move by state-owned Dubai World to delay paying some of its debt shook the markets in Europe on Thursday and those nerves spilled over into Asia. | The move by state-owned Dubai World to delay paying some of its debt shook the markets in Europe on Thursday and those nerves spilled over into Asia. |
| Tokyo's benchmark Nikkei fell 3.2% to 9,081.52, its lowest level since July. In Hong Kong, the Hang Seng was down 4.9% at 21,239.5. | Tokyo's benchmark Nikkei fell 3.2% to 9,081.52, its lowest level since July. In Hong Kong, the Hang Seng was down 4.9% at 21,239.5. |
| Oil prices also fell. US crude dropped 4.5% to $74.51 a barrel and London Brent Crude was down $1.26 to $75.73. | |
| The biggest underlying fear is that Dubai's problems could reignite the financial turmoil of the credit crisis. That would lower global demand for a whole range of commodities, including oil. | |
| The Gulf state, which has less oil money than many of its neighbours, became a trading and tourism hub with global ambitions. | The Gulf state, which has less oil money than many of its neighbours, became a trading and tourism hub with global ambitions. |
| It said on Wednesday it would ask creditors of the state-owned Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring. | It said on Wednesday it would ask creditors of the state-owned Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring. |
| Dubai World, the conglomerate that led the emirate's expansion, had $59bn (£36bn) of liabilities as of August, a large proportion of Dubai's total debt of $80bn. Nakheel was the builder of three palm shaped islands off Dubai. | Dubai World, the conglomerate that led the emirate's expansion, had $59bn (£36bn) of liabilities as of August, a large proportion of Dubai's total debt of $80bn. Nakheel was the builder of three palm shaped islands off Dubai. |
| The news shook markets that are recovering from the collapse of the US housing market and contagion that threatened to rupture the global financial system last year. | The news shook markets that are recovering from the collapse of the US housing market and contagion that threatened to rupture the global financial system last year. |
| "The panic button's been hit again," said Francis Lun, general manager of Fulbright Securities. | "The panic button's been hit again," said Francis Lun, general manager of Fulbright Securities. |
| Banks and builders were hit hardest as they are the most likely to be exposed to firms with property at the sharp end of the slump. | Banks and builders were hit hardest as they are the most likely to be exposed to firms with property at the sharp end of the slump. |