HONG KONG, Sept 15: Markets across Asia tumbled Monday on new fears over the state of the global financial system as Wall Street giant Lehman Brothers said it would file for bankruptcy.

Taiwan was the worst hit of the major markets, closing down 4.09 per cent, while Singapore shed 3.27 per cent.

However, in Australia, dealers fought back slightly from earlier losses to end the day off 1.8 per cent. But the worst hit of Asia’s bourses was Jakarta, which was 4.7 per cent off, while Manila shed 4.2 per cent.

Tokyo, Hong Kong, Shanghai and Seoul were closed for public holidays.

Financial sectors suffered most as investment bank Lehman Brothers, hard-hit by the US subprime real estate meltdown, staged a last-ditch effort to find a buyer.

When it failed, it announced that it would file for bankruptcy “in order to protect its assets and maximise value.

The Federal Reserve and major global banks opened up fresh credit as markets braced for its collapse, with many fearing a domino effect that would ravage the rest of the global financial system.

SYDNEY: Australian share prices fell 1.8 per cent, dealers said.

The benchmark SP/ASX200 closed down 86.1 points at 4,817.7, led by heavy losses in the financial sector, while the broader All Ordinaries dropped 82.1 points to end the day at 4,875.

Turnover was 1.13 billion shares worth 4.97 billion dollars (4.06 billion US) with 812 stocks lower, 283 shares up and 285 unchanged.

Dealers said financial stocks were hit hard after efforts to find a buyer for Lehman collapsed.

Meanwhile Bank of America announced it will buy Merrill Lynch, while a report said AIG (American International Group) was seeking a 40 billion US dollar bridge loan from the US Federal Reserve.

SINGAPORE: Singapore shares closed 3.27 per cent lower, dealers said.

The blue chip Straits Times Index skidded 84.12 points to 2,486.55. Volume traded totalled 922 million shares worth 993 million Singapore dollars (699 million US) and losing shares outpaced winners 520 to 88 while 738 issues were even.

The market is terrible. The best is to stay away, a local house dealer said.

DBS was off 56 cents to 16.46, United Overseas Bank down 92 cents to 17.64 and Oversea-Chinese Banking Corp surrendering 21 cents to 7.48.

National carrier Singapore Airlines dropped 30 cents to 15.10, Singapore Telecommunications fell 10 cents to 3.26.

KUALA LUMPUR: Malaysian share prices ended 1.2 per cent lower, dealers said.

The Kuala Lumpur Composite Index shed 12.40 points to close at 1,031.63.

Utility giant Tenaga was down 4.2 per cent at 6.90 ringgit and plantation company Sime Darby lost 2.5 per cent at 5.95 ringgit.

M3nergy added 17.7 per cent at 1.13 ringgit and Maybank gained 2 per cent at 7.85 ringgit.

JAKARTA: Indonesian shares slumped 4.7 per cent, dealers said.

The Jakarta Composite Index tumbled 84.81 points to its lowest closing level since March 2007 at 1,719.25.

Nickel miner Inco plunged 20 per cent to 2,175 rupiah and rival Antam fell 15 per cent to 1,020 on fears commodity prices will continue to fall.

Bank Mandiri fell 8.2 per cent to 2,250 rupiah and Bank Rakyat slid 5.0 per cent to 4,800.

WELLINGTON: New Zealand share prices fell 1.26 per cent, dealers said.

The benchmark NZX-50 index fell 41.78 points to 3,319.90.

Market leader Telecom was down four cents at 2.93 dollars, and Fletcher Building off 29 cents to end the day at 7.36.

Contact fell 11 cents to 8.90 and Fisher & Paykel Healthcare was down six cents at 3.16.

MUMBAI: Indian shares fell 3.35 per cent, dealers said.

The benchmark 30 share Sensex index fell 469.54 points to 13,531.27, its fifth consecutive day of losses.

Property, software and telecom stocks were hardest hit.

Indian shares have now shed 33.3 per cent for the year on overseas funds outflows in nearly eight billion dollars.—AFP