Recession fears return to the fore

Positive market sentiment following bold government moves to stem the financial sector meltdown evaporated yesterday and recession fears rose to the fore, sending shares slipping around the world after a two-day rally.

In Asia, the Chinese mainland's benchmark Shanghai Composite Index declined by 22.65 points, or 1.12 percent, to 1994.67, while the smaller Shenzhen Composite Index shed 4.92 percent to close at 524.70.

Hong Kong's Hang Seng Index lost 843 points, or 5 percent, to 15990 after rising more than 13 percent the previous two days.