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Asian Markets Down Sharply on Recession Fears

Asian markets fell sharply Monday, on fears a recession in the United States will weaken the demand for Asian exports.

China's Shanghai Composite Index tumbled more than 7 percent while the Nikkei in Tokyo and Sensex in Mumbai were both down almost 4 percent. Hong Kong's Hang Seng index dropped more than 5 percent.

The major European indexes in London, Paris and Frankfurt were also down in midday trading, but much less than Asia, dropping about 2 percent.

Analysts say investors are still nervous following last week's worldwide plunge, despite President's Bush's plan to revitalize the slowing U.S. economy with tax rebates.

The U.S. Federal Reserve meets this week to consider if another interest rate cut is needed to help stave off a recession.

Some information for this report was provided by Bloomberg.